SMEs brace for tariff-induced costs

The country's leading business chamber, which mostly consists of small and medium enterprises (SMEs), is bracing for extra costs due to the Trump administration's imposition of a 17-percent tariff on Philippine imports.

- BY DEXTER BARRO II

In a statement, the Philippine Chamber of Commerce and Industry (PCCI) said SMEs are particularly wary of the potential impact of retaliatory tariffs other countries may take in response to the United States' (US) sweeping tariffs.

Last week, US President Donald Trump announced a 10-percent baseline tariff on all imports, along with a higher reciprocal tariff on countries with which America has a trade deficit.

This unprecedented move, framed by Trump as a boon to American manufacturing, is feared to incite a devastating trade war.

Trade giant China recently announced a 34-percent tariff on US goods as its response to Trump's 34-percent tariff on Chinese goods.

Trump has since threatened to slap China with an extra 50-percent tariff if it fails to scrap its counter-tariff, further rattling stock markets across the globe.