Phl to finesse US tariff

According to economist and former lawmaker Joey Salceda, the recent announcement of US President Donald Trump that the US and the Philippines have agreed on a tariff deal that would give a zero tariff on US exports to the Philippines and a 19 percent tariff on Philippine exports to the US, is still not a done deal and would still be subject to further talks.

- MARIANNE GO

Salceda, who now heads the Institute for Risk and Strategic Studies Inc. or Salceda Research, said that details of the Trump-President Marcos trade agreement are still being ironed out, and that President Marcos, "out of an abundance of courtesy and diplomatic finesse, is right not to directly correct President Trump's sweeping initial announcement."

Salceda, who claims to "have had conversations with the people working on the details," assured that:

1. There will be further rounds of talks for key exemptions to the broad 19 percent tariff imposed. The aim is to get even lower tariff rates for Philippine goods. Principal targets are textile and electronics exports of the Philippines.

2. Zero tariffs for the US may not be as sweeping as Trump makes it appear. The US wants zero tariffs on cars, since the Japanese, the Chinese and in some cases, even the Vietnamese, are pricing them out of competition. Out of diplomatic poise, it is right that President Marcos let Trump have his moment for his own domestic audience, and we work on the details later.

3. Zero tariffs on US-made capital equipment will be beneficial for our manufacturing. The semiconductor industry in the country could certainly benefit from zero tariffs on US-made photolithography machines, wafer etching tools, ion implanters and inspection systems. Zero tariffs on these low-revenue, but high-return imports will be mutually beneficial for our economies.