Senate President Francis ‘Chiz’ G. Escudero is urging the country’s economic managers to prepare and plan for contingencies and a calibrated response to the 17-percent tariff that U.S. President Donald Trump is imposing on Philippine exports to cushion its impact on the local economy.
“What are the pains and what are the gains, if any, that we should expect? Will it be an economic earthquake that will shake our economy to its foundations? Or will it just be a slight tremor that will not cause any harm?” Senate President Escudero raised amid the global tariff tsunami unleashed by the United States when President Trump assumed office.
“The baseline of information should be out by sundown today, so we will know, as a nation, on how to move forward,” the Senate chief said.
The first order of business, he said, is for the government to provide clarity amidst the confusion and a way forward that is a win for the Philippines, but he cautioned any “rushed retaliatory response because any tariff raised is a pass-on tax to our already overtaxed people.”
To illustrate his point, he cited soybeans that the Philippines imports from the U.S. which local growers of chicken and hogs use for their feeds that could be potentially affected by the tariff hike. “Ibig sabihin nito ay tataas at magmamahal din ang bilihin because $1 in every $6 of the country’s export earnings comes from our trade with the US.”
In 2024, the Philippines exported $14.2-B worth of goods to the United States, while it imported $9.3-B, or a trade gain for the Philippines of $4.9-B.
In February alone, the Philippines shipped almost $1-B worth of goods to the U.S., ranking it first ahead of Japan, Hong Kong, China, and the Netherlands.
“I am sure our economic managers have considered this possibility and will act accordingly with dispatch. They have my full trust and confidence on how to minimize the pain and maximize the gain,” Senate President Escudero said.
“Any upheaval carries opportunities, and I know that we will be able to spot it, seize it, and skillfully navigate the new economic terrain and exploit it for our gain,” he added.