Connect with us

Hi, what are you looking for?

Captain Of Success
Top Stories

Stock Markets

Exporters left in the dark after Marcos silence on 19% tariff

STOCK PHOTO | Image from Freepik

By Justine Irish D. Tabile, Reporter

EXPORTERS said President Ferdinand R. Marcos, Jr. did not outline a government plan to deal with increased US tariffs in his fourth State of the Nation Address (SONA).

Foreign Buyers Association of the Philippines (FOBAP) President Robert M. Young said that exporters had been expecting the SONA to signal relief measures after US President Donald J. Trump announced a 19% tariff on Philippine goods, two percentage points higher than the initial rate announced in April.

“The whole thing to us is still opaque. When I say opaque, there’s no clarity,” he said in a phone interview, noting that government officials are giving off mixed signals regarding the conclusion of the reciprocal trade agreement.

“That’s why we expected him to say some comforting words,” he added.

He said exporters were hoping for forms of assistance that will “lessen their selling price.”

The Philippines and the US recently concluded talks on reciprocal tariffs, which are due to take effect on Aug. 1. The Philippine rate gives it little or no advantage over regional competitors like Indonesia (19%) or Vietnam (20%).

He expressed fears that the tariff will render Philippine goods unattractive, with consumers “instead picking commodities from Vietnam, Bangladesh, and Indonesia, among others,” he added.

He said there is some leeway to cushion the blow against exporters, such as tax reductions or holidays and subsidized customs and port fees.

“Right now, the sentiment is that nobody is pushing for this kind of remedy,” he added, noting the absence of “assurance from the government that we are here to assist you in any way.”

He said clear direction from the government will not only provide comfort to exporters but also to buyers.

“When they hear these kinds of comforting words, their trust level will also increase, which will be good for us, as that will push them to somehow continue (dealing with us),” he added.

    You May Also Like

    Finance

    Shadow Scottish secretary Andrew Bowie has called for an urgent policy review on North Sea oil and gas, following comments by former US President...

    Finance

    It’s 3pm on a Friday. If you’re working from home, there’s a growing chance you’ve already shut your laptop, set your Teams status to...

    Finance

    Microsoft has become the second publicly traded company in history to reach a $4 trillion market valuation, propelled by booming demand for artificial intelligence...

    Stock Markets

    BW FILE PHOTO By Revin Mikhael D. Ochave, Reporter LISTED DigiPlus Interactive Corp. said the government could generate an additional P200 billion to P300...

    Disclaimer: CaptainOfSuccess.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
    The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.