Slashing US tariffs ‘always a possibility,’ says Recto

Instead of retaliating, Manila is mulling the possibility of bringing down the tariffs levied on goods imported from the United States on the heels of US President Donald Trump’s announcement of reciprocal tariffs on about 90 countries, including the Philippines.

“That’s always a possibility,” Finance Secretary Ralph Recto told GMA News Online on Wednesday.

The Finance chief was asked if cutting tariffs on US imports was already on the table in light of the economic managers’ meeting on the Philippine response to Trump’s reciprocal tariffs.

Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go, on the sidelines of the National Food Fair in Mandaluyong City, said the Marcos administration’s economic team “met yesterday re tariffs and the Philippine response.”

Trump last week announced a 17% reciprocal tariff on Philippine goods, still “discounted” against the 34% rate that Manila charges against American goods.

“We can reduce tariffs if the US will also reduce tariffs and reciprocate,” Recto said.

“Furthermore, we continue developing our local economy and convince investors to invest in the Philippines, considering we have a huge domestic market, which we expect to be the 13th largest in the world by 2030,” he said.

Compared to its regional peers, the levy slapped on the Philippines was relatively lower —Cambodia at 49%, Laos at 48%, Vietnam at 46%, Thailand at 47%, China at 34%, India at 27%, South Korea at 26%, and Malaysia at 24%.

The Philippines' tariff rate, however, is higher than the 10% baseline tariff on all imports to the US.

“Invite investors to also manufacture and export to the US, considering we have lower tariffs. Promote free trade agreements with all other countries as well,” said Recto.

Trade Secretary Maria Cristina Roque earlier said that the Philippines can take advantage of the relatively lower tariffs imposed on its goods entering America compared to its regional peers.

Go likewise said that Manila’s lower reciprocal tariffs could “open 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.”

Recto also said earlier that the government is leveraging the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) Act to lure more investors into the Philippines. — VBL, GMA Integrated News