What Trump's tariffs mean for Filipinos

After President Ferdinand Marcos Jr.’s first-ever meeting with US President Donald Trump, Washington’s tariffs on Philippine goods have seemingly settled at 19%—slightly lower than the previous round but still higher than the original rate.

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In exchange for the slight tariff reduction, the Philippines agreed to open several markets to US goods, including medicine and automobiles. This means the country will not impose tariffs on certain American imports.

Now the question is: How will this affect Filipinos? Two economists weigh in.

Minimal domestic impact, global ripple effects. Michael Ricafort, chief economist at RCBC, noted that the Philippines continues to have one of the lowest tariff rates in the region. Still, many countries remain cautious in their dealings with Trump, citing the “TACO” phenomenon: “Trump always chickens out.”

Should the current tariff rates hold, Ricafort said the US—being the Philippines’ largest export market—could cause a modest slowdown in the economy. However, the overall impact may be limited since exports are not a major driver of the country’s gross domestic product (GDP).

The greater concern, Ricafort said, is the impact on global trade.