US policy shift aids PH exports recovery—MUFG

MUFG Bank Ltd. expects tariffs on Philippine imports to the United States (US) to decline relative to previous levels, citing shift in trade policy following the high-profile legal setback for the Trump administration.

- By DERCO ROSAL

Analysts at the Japanese financial giant said in a commentary Friday, Feb. 27, that the Philippines is positioned to see lower effective trade costs than those seen prior to a US Supreme Court ruling that curbed the White House’s tariff authorities.

“For the Philippines specifically, tariffs are likely to come down relative to pre-US Supreme Court (SCOTUS), given relatively lower exemptions and sectoral tariffs,” MUFG analysts wrote.

President Trump initially announced a 10 percent blanket tariff before threatening to raise it to 15 percent. The US Supreme Court later ruled that the emergency powers law Trump relied on did not authorize his tariff policy.

Following the ruling against the use of the International Emergency Economic Powers Act (IEEPA) for tariffs, the Philippines is expected to see a shift in trade costs.