PH economy 'resilient' to US tariffs

The Philippine economy and its export industry will see no decline in output and exports from the direct impact of the 19-percent tariffs threatened by the United States (US), according to a study by De La Salle University (DLSU) economists.

- By DEXTER BARRO II

In a recently published policy brief titled “The tariff war and implications for the Philippines,” DLSU distinguished professor Jesus Felipe, associate professor Mariel Monica Sauler, and graduate student Eva Marie Aragones observed that US President Donald Trump’s latest tariff push will unlikely lead to a global crisis triggered by a collapse in world trade, such as during the so-called Great Depression in the 1930s.

To recall, the US’ protectionist policies were primarily cited as the main cause behind the worsened depression during the period, which refers to a sustained downturn in economic activity that is characterized by severe unemployment and poverty.

“Policy makers, including Mr. Trump, know that there will be no winners,” the report read. “The US administration is pushing everybody to the edge but will not push them down the cliff.”

When Trump first slapped tariffs against America’s major trading partners during his self-proclaimed Liberation Day, the Philippines was on a receiving end of a 17-percent tariff rate.

After a postponement of the tariffs’ implementation, Trump issued letters to the tariff-threatened nations, informing them of significantly higher tariffs. In the case of the Philippines, it was revised to 20 percent.