GDP target at risk with Trump tariffs

The country's growth target for this year is now at risk as US President Donald Trump imposed reciprocal tariffs, with the government seen resorting to higher spending to prop up the economy from the Liberation Day impact, according to a unit of Fitch Solutions.

- By LOUISE MAUREEN SIMEON

In a report, BMI Country Risk & Industry Research said the 17-percent reciprocal tariff slapped on the Philippines could reduce gross domestic product (GDP) by 1.1 percentage points.

As such, BMI warned that this could put the government's growth target at risk.

For 2025, the Cabinet-level Development Budget Coordination Committee expects the economy to grow by six to eight percent.

Given the potential economic fallout from Washington's protectionist policies, BMI emphasized that more fiscal support will be needed to at least cushion the blow.