Trump tariffs to impact Phl exports, growth

The 17-percent reciprocal tariff on all Philippine goods imposed by US President Donald Trump is expected to weigh on the country's exports and economic growth, according to economists.

- By KEISHA TA-ASAN

While the Philippines is less exposed than other economies in the region, Bank of the Philippine Islands (BPI) lead economist Jun Neri said the tariffs could still dampen industrial output and slow gross domestic product (GDP) growth.

"The newly imposed tariff is expected to raise costs for Philippine exporters, making their products less competitive in the US market. Key sectors likely to be affected include electronics and agricultural products," Neri said.

The US accounted for nearly 17 percent of Philippine exports in 2024. BPI estimates that the new tariffs could cause Philippine export growth to swing to a 4.2-percent contraction this year, from the previously projected 6.1-percent expansion.

Industrial production may also slow by as much as 1.7 percent, reflecting the disruption to supply chains and the negative knock-on effects from reduced trade with the US.