Trump tariff may hirder PH's competitiveness

Many developing economies, including the Philippines, are expected to lose their competitiveness in the United States (US) market once the currently suspended tariffs imposed by the Trump administration are reinstated, according to the United Nations Conference on Trade and Development (UNCTAD).

- BY DEXTER BARRO II

Last month, President Donald Trump shifted the US' tariff policy from being among the lowest in the world to suddenly among the highest, slapping all trading partners with new taxes.

During his so-called "Liberation Day" on April 2, Trump announced a universal 10 percent baseline tariff on all imports into the US, regardless of prior trade agreements or multilateral commitments.

Higher country-specific tariffs, labeled as reciprocal tariffs, were also employed as the United States moved to balance its trade deficits with other countries.

These significantly higher tariffs, which are feared to upend global trade, were supposed to be implemented on April 9 but have since been postponed for 90 days or until July 7.

During the initial announcement, the Philippines was subjected to 17 percent tariffs on the back of its US trade deficit of $4.9 billion.

In its report, UNCTAD said developing countries such as the Philippines often rely on a "narrow range of products and limited number of markets."