GLOBAL DEMAND for minerals may slow if the US tariff regime leads to economic slowdowns, the Chamber of Mines of the Philippines (CoMP) said.
The 17% tariff imposed on Philippine exports to the US is “unlikely to have a direct significant impact” on the mining industry, which primarily exports mineral ore to Asian customers, CoMP Executive Director Michael T. Toledo said via Viber.
“However, indirect effects could occur if global trade tensions lead to economic slowdowns, affecting demand for minerals and metals,” he added.
A decline in mineral exports will in turn affect government revenue, he added.
Several minerals have been exempted from President Donald J. Trump’s fresh tariffs, including copper, zinc, rare earths, germanium, antimony, and uranium, according to S&P Global.
It said lithium, cobalt, tungsten, platinum group metals, and some forms of ferromanganese and coal are also exempt.
“The exemptions cover many refined and raw forms of the materials,” it said.
According to a White House fact sheet, reciprocal tariffs will not apply to semiconductors, pharmaceuticals, gold, and “certain minerals that are not available in the US.”
The Philippines is the biggest exporter of nickel ore concentrate, accounting for more than one-fourth of the global supply. Over 98% of Philippine exports go to China, with 1% shipped to Japan.
China has retaliated by placing several critical minerals on an export control list.
“We don’t see any impact at the moment, but it might at some point in the future if the commodity prices generally drop as a result of the tariffs,” Philippine Nickel Industry Association President Dante R. Bravo said in an e-mail.
Mr. Toledo of CoMP said for mining contractors, the impact may be minimal unless they rely heavily on imported equipment or materials subject to tariffs.
“Foreign corporations operating in the Philippines might face challenges if global economic conditions deteriorate, but the Philippine mining sector is not a primary target of Mr. Trump’s tariffs,” he added. — Kyle Aristophere T. Atienza
