PH loses tariff edge to Indo in US trade race

The Philippines is no longer in an advantageous position in the race to take full advantage of the reciprocal tariffs imposed by the United States (US), with Indonesia’s recent deal to cut its tariff poised to maintain the status quo in agricultural exports.

- By DEXTER BARRO II

US President Donald Trump announced on Wednesday, July 16, that he has agreed to a deal with Indonesia to reduce the tariffs on the Southeast Asian country from 32 percent to 19 percent.

This happened one week after Trump raised the tariffs against Philippine goods from 17 percent to 20 percent.

Among the top exports of both the Philippines and Indonesia to the US are agricultural products and semiconductors.

Department of Agriculture (DA) Assistant Secretary Arnel de Mesa said the two countries are relatively equal when it comes to exports of coconut products.

Coconut products are the country’s top agricultural exports to the US, which include coconut oil, desiccated coconut, and other byproducts.

With Indonesia’s tariff rate now at 19 percent, De Mesa said this will essentially retain the status quo in coconut trade.

The Philippines, once the world’s biggest coconut exporter, has since lost this title to Indonesia.