Tariff on Philippine exports to US still in limbo
MANILA, Philippines — The national government remains uncertain about the tariff rate that will apply to Philippine exports to the United States, but is hopeful that existing exemptions will still be honored under the new policy, as officials await formal clarification from Washington.
Finance Secretary Frederick Go, on Thursday, told reporters they were still waiting for official communication from US authorities to clear up the confusion.
“We are also asking the United States. The United States has to respond to 150 countries. So, I think the communication has not yet arrived,” Go said.
Go previously said the Philippines remains in a “good spot” after the recent tariff development, noting that most of the country’s key exports have long been exempt from US tariffs even prior to the recent ruling by the US Supreme Court.
READ: US tariff uncertainty drives PH to seek new export markets
What now?
However, uncertainty persists over whether these exemptions will automatically carry over to the newly announced rates. According to Go, the government is operating on the assumption that they will.
“What we are hopeful for and what we assume it to be is that if they apply the 15 percent tariffs on us, it will continue to apply on the goods that they were applying a 19 percent tariff on,” he said.
READ: US tariff relief comes with new 15% levy
“Our assumption is all the goods that were exempted before, which are the semiconductors and the major agricultural exports, will continue to not be included in the list of items to be subjected to the uniform 15 percent tariff,” he added.
US President Donald Trump last week signed an order imposing a 10 percent tariff for 150 days, following a high court ruling that struck down his reciprocal tariffs on more than 100 countries last year.
READ: US tariff relief must not lead to complacency – analysts
A day later, Trump announced an increase to 15 percent. But the US Customs and Border Protection said on Monday that the applicable rate would be 10 percent, further adding to confusion among exporters. INQ
