Marcos' economic czar sees silver lining in Trump's 17% tariff on PH goods

Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go on Thursday brushed off the impact of US President Donald Trump's imposition of 17% tariff on Philippine goods entering America, seeing it as a boon rather than a bane for the country's economic future.

Special Assistant to the President for Investment and Economic Affairs Sec. Frederick Go is unspooked by US President Donald Trump’s imposition of 17% reciprocal tariff rate for the country’s goods entering America. pic.twitter.com/mFbZhxq84K

— Ted Cordero (@Ted_Cordero) April 3, 2025

"To me, it looks, I think, to me it's good news…. Look at it from my angle… now look at it. I compared 10 countries," Go told reporters at the sidelines of SGV's 2025 Philippine CEO Outlook in Makati City on Thursday.

Go, the economic czar of President Ferdinand "Bongbong" Marcos Jr., compared the "relatively lower" tariff rate to be charged against Philippine exports to the US to the levies slapped on its Asian and Southeast Asian neighbors' goods.

"I took a basket of 10 countries and I arranged it from highest to lowest… So China (54%), Vietnam (46%), Thailand (36%), Indonesia (32%), Taiwan (32%), South Korea (25%), Malaysia (24%), Japan (24%), Philippines (17%), Singapore (10%)," Go said.

"So, from my perspective, I think this opens up a lot of opportunities for companies that are based in the countries with higher tariffs to look seriously at investing in the Philippines to set up manufacturing facilities in the Philippines to take advantage of our relatively much lower tariff," he said, adding that, "this is an opportunity to attract investments because we're a good ally."

It was earlier reported that the US chief's reciprocal higher tariff would be targeted on countries that have significant trade imbalances with the US.

Data from the Office of the United States Trade Representative showed that the US goods trade deficit with the Philippines stood at $4.9 billion in 2024, up 21.8% from 2023.

America's total goods trade with the Philippines amounted to about $23.5 billion in 2024, with US goods exports to Philippines amounting to $9.3 billion, up 0.4% while goods imports totaling $14.2 billion.

The US is the Philippines' top destination for its goods, accounting for 80.2% of its exports in 2024 at $58.7 billion, data from the Philippine Statistics Authority showed.

"We're a close ally. Let's get more American investments into the Philippines, get more businesses to set up shop in the Philippines. I think that really is the opportunity," Go said.

The Marcos administration's economic czar said that "if the Asian countries that have higher tariffs would set up manufacturing facilities in the Philippines, that would be music to our ears."

Rizal Commercial Banking Corp. chief economist Michael Ricafort told GMA News Online that as a result of the tariff, Philippine exports to the US would become 17% more expensive, leading to slower demand for Philippine exports to the US.

In turn, Ricafort said, this could lead to "slower overall Philippine economic/gross domestic product (GDP) growth."

However, since the Philippines was imposed lower tariffs than its Asian regional neighbors, Ricafort said, some multinational companies may opt to locate investments or production facilities in the Philippines "since it has one of the lowest US import tariffs." — VDV, GMA Integrated News