Tariff exemption aiding PH electronics

The tariff exemption on electronic products ordered by United States (US) President Donald Trump would provide the Philippines' top export commodity some relief, according to Japanese financial giant MUFG Bank Ltd.

- By BEN ARNOLD DE VERA

This will reinforce the Philippines' position among the emerging markets relatively less exposed to the impact of Trump's tariff spree, which is also seen benefitting Filipino consumers by way of downward domestic inflation.

In an April 14 report, MUFG Global Markets Research senior currency analyst Michael Wan said the Trump administration's announcement over the weekend—that smartphones, semiconductors, and other key electronics items are exempted from reciprocal tariffs as well as the additional 125-percent tariffs on China—would greatly benefit, although temporarily, Asian manufacturers.

This exemption would cover US imports estimated at $380 billion, significantly higher than the previously semiconductor-focused $45-billion worth that Trump announced during his so-called "Liberation Day" last April 2.

"The likes of Taiwan, for instance, will see an additional 53 percent of its export basket exempted, followed by 28 percent for Thailand and Vietnam, 26 percent for the Philippines, and 25 percent for Malaysia," Wan said.