US tariff hike: A boon for Phl manufacturing

The latest wave of U.S. tariff increases targeting key Asian economies may be setting the stage for a strategic rebalancing in global manufacturing one in which Cebu, a historic furniture export powerhouse, is poised to reclaim a central role.

- Ehda M. Dagooc

Business leaders in the Philippines see the policy shift as a potential inflection point, presenting new competitive advantages for the archipelago nation amid tightening global trade dynamics.

In an interview with Leslie D. Lim, president of the Federation of Ecozone Service Providers—Visayas Chapter and CEO of LDL Group of Companies, she said that the Philippines’ relatively moderate 17 percent tariff rate—compared with the higher duties now levied on goods from Vietnam, China, Thailand, and South Korea—offers a compelling case for multinational manufacturers to relocate operations.

“This shift in tariff policy may catalyze a reallocation of global manufacturing footprints. For firms seeking to maintain cost efficiency in exports to the U.S., the Philippines, particularly Cebu—now represents an increasingly viable alternative,” she explained.