ASEAN trade ministers to discuss Trump’s reciprocal tariffs on Thursday

Trade ministers of the Association of Southeast Asian Nations (ASEAN) will meet on Thursday to discuss what steps to take following the reciprocal tariffs imposed by the United States, with Trade Secretary Cristina Roque saying lowering tariffs would be the best for the Philippines.

“We have to listen to what our ASEAN partners have to say at mag-uusap kami ng President talaga [the President and I will discuss] what our direction will be but for now, it’s good for us to listen and to really see how we can make the best out of this meeting,” she said in ambush interview on Wednesday.

This comes as US President Donald Trump last week unveiled “Liberation Day” reciprocal tariffs, slapping the Philippines with a 17% increase compared with the 34% rate that Manila charges against American goods.

“To lower the tariff would always be best, but for me now, it’s really for us to really look at the opportunity rather than to look at the things that are not working out,” Roque said.

Roque earlier said the Philippines is still at an advantage which can be used to boost the country’s export into the United States, as other countries in Asia have higher reciprocal tariffs—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 25%.

One of the areas Roque cited is the coconut export, which the Philippines can capitalize on as its main competitor Thailand was given higher reciprocal tariffs.

In the same interview, Roque said the Philippines is still optimistic about making a free trade agreement (FTA) with the United States. Philippine Ambassador to the US Jose Manuel Romualdez earlier said the country has a “good chance” of entering into an FTA under the second administration of Trump.

“Yes, we’re still optimistic and another thing we’re looking at is to push for the free trade agreement not just with the US but with a lot of countries because when we do free trade, there’s really a lot of benefits that we can generate,” she said.

Other markets being looked at for possible FTAs are in South America, the Middle East, and Asia.

For his part, Finance Secretary Ralph Recto said the Philippines is looking into the possibility of bringing down the tariffs levied on American goods. This was mirrored by Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go, who said reducing tariffs is possible should the US reciprocate.

Recto earlier said 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.

“The Philippine economy is primarily driven by domestic demand rather than exports. This makes us relatively resilient against trade wars,” he said last week.

Latest data available from the Philippine Statistics Authority (PSA) show that the United States was the top market for Philippine exports in February, accounting for $986.84 million. It was the fifth-largest source of imports into the Philippines, with $647.25 million. — BM, GMA Integrated News