Remember the big meeting between United States President Donald Trump and Philippine President Ferdinand “Bongbong” Marcos, Jr., over a month ago? A 19% tariff by America on Philippine goods was set and now the government of the Philippines is seeking exemptions specifically for exports of agricultural commodities, electronics, vehicle tires, bags and aircraft parts, according to a BusinessWorld news report.
To put things in perspective, posted below is an excerpt from the news report of BusinessWorld. Some parts in boldface…
THE PHILIPPINES is asking the US to exempt exports of agricultural products and other goods from the 19% tariff imposed by US President Donald J. Trump, a Trade official said on Thursday.
Trade Undersecretary Allan B. Gepty said the government is seeking US tariff exemptions for exports of agricultural commodities, electronics, vehicle tires, bags and aircraft parts.
“We submitted a list of products we asked the US to exempt from the imposed tariff rates, because these are key and complementary items. And some of them, in fact, are not even produced or manufactured there (in the US),” he told senators at a Senate briefing on the tariff set by Washington on Philippine exports.
“The immediate need right now is we want to negotiate for an exemption, because we want to protect our industries whose main export market is the US,” he added.
The US began imposing a 19% tariff on Philippine goods starting Aug. 7.
“We already submitted to the US the products that should be exempted from the reciprocal tariffs,” he said.
Mr. Gepty said about 23% of the country’s total exports to the US are exempted from the 19% tariff.
In June, the United States was the top destination for Philippine-made goods amounting to $1.22 billion, 35.2% higher from the same month a year ago. Around 53% of the Philippines’ total exports to the US were semiconductors and electronics, Mr. Gepty said.
The US has yet to set new global tariffs for semiconductors and pharmaceuticals. Mr. Trump had earlier said he plans to announce higher tariffs on imports of semiconductors, but companies that plan to build manufacturing facilities in the US would be exempted.
“Ninety-nine percent of our semiconductors as of now are still exempted, there’s still no problem” he said. “If the 100% continues, that’s a big problem,” he added.
Mr. Gepty said most of the semiconductors are made by US companies in the Philippines and exported to the US. He noted the higher tariffs would pose problems for the US supply chain, particularly for its defense industry.
Meanwhile, the Philippines has not formally granted zero tariffs on US products, as negotiations over a reciprocal trade agreement remain ongoing, he said.
Let me end this post by asking you readers: What is your reaction to the recent developments? Do you think the Philippines will succeed in getting an exemption from the Trump tariff on key exports?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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