19% US tariff 'too high'

While the 19-percent United States (US) tariff imposed on Philippine exports compared to zero duties on certain American goods may seem unfair, private-sector economists said reducing the original 20-percent rate is still a step forward.

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Jonathan Ravelas, senior adviser at Reyes Tacandong & Co., argued that the latest tariff deal between the trade giant US and the Philippines remains unbalanced. He said the 19-percent duty on Philippine goods is still too high given that some American products will enter the country tariff-free.

Sharing a similar view as Ravelas, John Paolo Rivera, senior research fellow at the state-run policy think tank Philippine Institute for Development Studies (PIDS), said the tariff deal creates “an unbalanced trade relationship that weakens our external competitiveness.”

“It sends a signal that even longstanding partners like us are not exempt from the shift toward protectionism and bilateral leverage,” Rivera said.

On Wednesday, July 23, Philippine President Ferdinand Marcos Jr. concluded tariff negotiations with US President Donald Trump, resulting in a concession that, while not without risks, is still seen by some economists as having modest benefits.