Philexport: No avoiding tariffs hit By Andrea E. San Juan
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ESPITE the lower tariff rates slapped by Washington on goods being shipped from the Philippines, the Philippines’s umbrella organization of exporters said the country may not be spared from supply chain disruptions which could lead to higher prices of imported raw materials. In a statement at the weekend, the Philippine Exporters Confederation, Inc. (Philexport) expressed relief that the additional tariffs imposed by the administration of US President Donald Trump on the Philippines are “much smaller” than
those slapped on other countries. In a recent radio interview, Philexport President Sergio R. OrtizLuis Jr. said, “When it came out that we are the lowest compared to our competitors, there was a sigh of relief, meaning our competitiveness will not be eroded.” In fact, Ortiz-Luis noted that “to a certain degree, it might even turn into an advantage because even if we increase our prices, our competitors can’t match ours as they have to adjust their prices against much higher tariffs on their products.” Trump imposed a 17-percent tariff on Philippine exports, higher than the 10-percent baseline tariffs slapped on the major-
ity of over 180 of America’s trading partners as the US aims to revive its manufacturing capacity and reduce its trade imbalances with its partner economies. Trump revealed the charts of reciprocal tariffs on April 2, 2025. Looking ahead, Ortiz-Luis explained that all exporters to the US are seen to raise the prices of their products, but noted that “it won’t be so bad for the Philippines” considering the lower tariffs imposed.
Risks are real
HOWEVER, the country’s umbrella organization of Philippine exporters did not dismiss the possibility of risks arising from other
countries’ retaliatory moves due to being slapped with higher tariffs. “The new tariff rates might exert a significant impact on the global supply chain as other countries could retaliate with higher charges of their own, which could lead to disruption in the supply chain,” said Philexport. Zooming in on the Philippines, Ortiz-Luis said: “The supply chain could be disrupted as our competitors might raise their prices for the raw materials or products that the Philippines imports from them.” Philexport still highlighted that the lower tariffs would give the Philippines “some room for
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LOWER INFLATION SEEN BOOSTING RATE-CUT BID C By Reine Juvierre Alberto @reine_alberto
OOLING inflation in March has bolstered expectations of economists that the Bangko Sentral ng Pilipinas (BSP) will deliver a 25-basispoint rate cut at its policy meeting on April 10 amid the uncertainties brought by the United States’ imposition of tariffs.
Inflation eased to 1.8 percent in March, the lowest since the height of Covid-19 pandemic in May 2020, from 2.1 percent in February. (See: https:// businessmirror.com.ph/2025/04/04/ inflation-eases-to-1-8-in-march/). This development, along with the stronger peso in recent weeks, “paves the way for a potential rate cut” by the BSP in its April 10 meeting, according to Bank of the Philippine Islands Lead Economist Emilio S. Neri Jr. “The BSP might also consider a cut to support the economy in response to external developments, particularly the potential impact of President Trump’s
tariffs,” Neri said in a statement. The BSP said on Friday it will consider the latest inflation outturn, along with the latest domestic and global developments, in its monetary policy meeting. BSP Governor and Chairman of the Monetary Board Eli M. Remolona Jr. has signaled that there is a “good chance” of a 25-basis-point cut in its next rate-setting meeting. The slowdown in inflation could equip the Philippines in managing external headwinds, such as the impact of Donald Trump’s tariffs on global trade, Neri said. See “Lower,” A2
AGRI CHIEF ASKS BSP, DFA TO SUPPORT PHL ABACA FARMERS By Ada Pelonia
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@adapelonia
HE Department of Agriculture (DA) has urged the Bangko Sentral ng Pilipinas (BSP) to review its bid to remove abaca fiber from Philippine banknotes, noting that over 1.5 million Filipinos bank on the industry for their livelihood. Agriculture Secretary Francisco Tiu Laurel Jr. said he will seek support from key government agencies, particularly the central bank and the Department of Foreign Affairs (DFA), in its renewed effort to revitalize the abaca industry. “We will request that the Bangko Sentral ng Pilipinas reconsider its decision to remove abaca fiber from Philippine banknotes, given the impact this decision has on the livelihoods of millions who rely on the abaca industry,” Laurel said in a statement. “We will also urge the Department of Foreign Affairs to incorporate abaca fiber into Philippine passports and ask other government agencies to consider its use in official documents.” Philippine Fiber Industry Development Authority (PhilFIDA) Executive Director Arnold Atienza stressed that the government should spearhead the support for the sector that generates national pride and produces products
highly valued overseas. He also highlighted that promoting the abaca industry aligns with the global shift toward sustainable industries. “Abaca is biodegradable and can be recycled into compost, benefiting the farming community. As the world’s largest supplier of abaca, we have a responsibility to ensure that more of this valuable resource is available to support both the environment and local farmers,” Atienza said. The PhilFIDA chief pointed out that the 120,145 farmers engaged in abaca cultivation are among the poorest in the country, earning an estimated annual gross income of less than P40,000. Abaca, internationally known as Manila hemp, is indigenous to the Philippines, accounting for 86 percent of the global supply in 2023. From 2014 to 2023, the DA said the abaca industry generated an average annual export revenue of $139.2 million, with 18 percent derived from raw fiber and 82 percent from manufactured products, primarily pulp. Nearly all abaca pulp produced in the Philippines is exported.
‘Curb imports’
EARLIER, Atienza said the agency is keen on See “Agri,” A2
MODERNIZING THE ICON: E-JEEPNEYS POWER UP An electric jeepney, an iconic symbol of Filipino transport, charges at an EV station in Ayala Malls Manila Bay, Parañaque City. As of March 2025, the Philippines is home to 912 electric vehicle (EV) charging stations, the majority located in Metro Manila. The Department of Energy is set to introduce new guidelines this April to further accelerate the country’s shift toward electric mobility. This initiative is part of a broader push to modernize the jeepney—an emblem of Filipino culture—by transitioning to eco-friendly, sustainable versions. With plans to expand the EV charging network to over 7,000 stations by 2028, the Philippines is driving toward a greener future, making the legendary jeepney more efficient and environmentally conscious. NONIE REYES
DOE bares rules for natgas in blow for energy security By Lenie Lectura
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HE Department of Energy (DOE) issued over the weekend the guidelines governing the natural gas industry in a bid to hasten the exploration and development of indigenous natural gas to help attain greater energy security. Department Circular 2025-45 or the Implementing Rules and Regulations of RA 12120 or the Philippine Natural Gas Industry Development Act (PDNGI) states that the DOE shall have overall responsibility for supervising and monitoring the PDNGI, and de-
veloping the strategies to implement the policies, including a gas aggregation setup combining the gas needs of multiple consumers to form a single purchasing entity. “The DOE shall be the lead agency to determine the need for and regulate the development of aggregation in the country. The DOE shall determine the requirements to be an aggregator and designate the aggregator/s and issue the applicable policies to implement aggregation, including the minimum percentage of indigenous natural gas for aggregation and pricing mechanisms
LESS PLASTIC, MORE FANTASTIC: IS YOUR BUSINESS EPR-READY? PCX Markets’ Rudi Ramin on making sustainability work for your company
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PESO EXCHANGE RATES n US 57.1760 n JAPAN 0.3918 n UK 74.9406 n HK 7.3521 n CHINA 7.8667 n SINGAPORE 42.8638 n AUSTRALIA 36.1753 n EU 63.1909 n KOREA 0.0394 n SAUDI ARABIA 15.2424 Source: BSP (April 4, 2025)