Tariffs spur uncertainty, may put BSP ‘in a bind’ By Andrea E. San Juan
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HE 15-percent tariffs imposed by Washington may put the Bangko Sentral ng Pilipinas (BSP) “in a bind” as the recently-imposed duties could add uncertainty and can be inflationary. “Growth arguments push toward policy rate cutting, but exchange rate and imported inflation risks due to the tariffs push back,” Ateneo de Manila University (ADMU) economist Leonardo A. Lanzona Jr. told the BusinessMirror. He pointed out that the “net ef-
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fect” is likely to reinforce the BSP’s cautious, data-driven posture— making it harder to justify more than one additional rate cut. For his part, Philippine Institute for Development Studies (PIDS) Senior Research Fellow John Paolo R. Rivera said a broad 15-percent US global tariff adds uncertainty and can be inflationary through higher traded goods prices, even as it may “soften” global demand. “So the BSP must weigh growth support vs price stability more carefully,” Rivera also told this newspaper. Meanwhile, a US-Iran flare-up, the PIDS senior research fellow
underscored, “is mainly an oil shock risk which can quickly feed into transport, power, and food logistics costs, so it tends to reduce the room for aggressive rate cuts and increases the odds of a pause if energy prices stay elevated.” Given these developments, Rivera pointed out that the central bank will likely turn more “datadependent and risk-management oriented” as BSP will try to support “still-fragile” growth while guarding against imported inflation (via oil) and Philippine pesodriven price pressures. Nonetheless, Rivera said the BSP may continue to lean towards
easing monetary policy but may be moving in smaller, less frequent steps. “Roughly 0-2 more 25bps [basis points] cuts in 2026 with a higher bar for cutting if oil and forex pressures intensify or if inflation expectations start to drift,” added the PIDS senior research fellow. Meanwhile, Lanzona said BSP Governor Eli M. Remolona Jr.’s recent cue about the limited impact of policy cuts sends an “important signal” to how the Philippine economy should be maneuvered. “This is an important signal—the BSP is essentially telling the market See “Tariffs,” A2
BusinessMirror A broader look at today’s business
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‘OFW REMITTANCES MAY HIT RECORD HIGH ANEW’ www.businessmirror.com.ph
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Wednesday, February 25, 2026 Vol. 21 No. 136
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By Andrea E. San Juan
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IVERSIFIED remittance sources and stable overseas employment across sectors may drive remittances to a new record high this year despite macroeconomic uncertainties, according to Maybank.
“We expect full-year 2026 OFW Remittances to grow by 2.8 percent year-on-year to $36.5 billion [from the $35.6 billion in 2025], following the record-high base in 2025,” the Malaysian bank said. Maybank said it anticipates remittance flows to be supported by diversified source markets and resilient OFW employment amid ongoing policy and macro uncertainties. Nonetheless, the bank said the spillover to domestic demand may remain “measured” amid softer household confidence and a “cautious savings bias,” even as remittance inflows continue to provide a steady buffer. The strong finish last year, with December inflows rising to $3.5 billion, lifted total remittances to an “all-time high” of $35.6 billion in 2025. In 2024, cash remittances from overseas See “Remittances,” A2
TRASH TROUBLE A collapsed section of a landfill in Rodriguez, Rizal, is seen on Tuesday, February 24, 2026, days after the cave-in that occurred during operations involving four bulldozers. Mayor Ronnie Evangelista said only three individuals were involved in the accident, disputing claims by urban poor group Kadamay that as many as 50 people were affected. Some residents with relatives allegedly involved insist the number is higher, but claim many workers are unwilling to speak out for fear of losing their jobs. The incident comes weeks after the January 8, 2026 landfill slide in Barangay Binaliw, Cebu City, which left dozens dead, and revives memories of past disasters such as the July 10, 2000 Payatas dumpsite landslide and the September 15, 2018 Naga City landfill landslide—both of which underscored persistent safety and environmental concerns surrounding waste disposal operations. NONOY LACZA
OVER HALF OF GLOBAL SLUMS POPULATION IN ASIA-PACIFIC By Justine Xyrah Garcia
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ORE THAN half of the world’s slum population lives in Asia and the Pacific—including the Philippines—a new regional report showed on Tuesday. According to a study jointly published by the UN Economic and Social Commission for Asia and the Pacific (Escap), the Asian Development Bank, and the United Nations Development Programme (UNDP), an estimated 697 million people in the region were living in slums
in 2022. The figure accounts for 62 percent of the global total. While the share of urban residents living in slums declined from 32 percent in 2013 to 30 percent in 2022, the absolute number continued to rise, reflecting sustained pressure from rapid urbanization and limited affordable housing across the region. “The main factors driving this trend are rapid urbanization, insufficient urban planning, weak governance, ineffective land and housing policies, climate impacts, and a limited supply of See “Population,” A2
Amid US tariff plan jitters, PHL keeps calm By Bless Aubrey Ogerio
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HE Philippines is not yet panicking even as the United States considers a proposed 15-percent tariff, and questions linger over the move’s legal footing following a ruling by the US Supreme Court. According to Trade Secretary Maria Cristina Roque, the government is not rushing into new negotiations in Washington and is instead prioritizing regional engagements, particularly the country’s role in the Association of Southeast Asian Nations (Asean). “We are now focused on the Asean chairmanship because there’s a lot of opportunities that we can get from Asean,” Roque told reporters, partly in Filipino, on the sidelines of the Asean kickoff event in Makati on Tuesday. “Once bonded together, it’s a very strong force to reckon with,” she added. The latest tariff discussion follows a series
of shifts under US President Donald Trump. In April, he declared “Liberation Day,” imposing a baseline 10-percent tariff on most imports. The country was initially hit with a 20-percent duty, which was later reduced to 19 percent after negotiations in July, when a high-level Philippine delegation traveled to Washington, D.C. Roque said discussions with US counterparts have been ongoing even before the proposed 15-percent rate surfaced and stressed that no final decision has been made. “We still are in talks. So once we come up with something clearer, then I’ll send it to you,” she said. Any changes to the list of tariff exemptions would be taken up by the Philippine negotiating team, she said, with official guidance to follow. Malacañang earlier sought to play down the impact, with Palace press officer Claire Castro
saying most Philippine exports to the US would remain unaffected, and noting that many products were already exempt even before the Supreme Court ruling. Several agricultural goods, including coffee, cocoa, bananas, beef and other food items, were excluded from the latest round of tariffs. On the other hand, electronics, which accounted for 58.81 percent of total Philippine exports in 2025, remain a key concern. Latest data from the Semiconductor and Electronics Industries in the Philippines Foundation Inc. (Seipi) showed electronics exports rose 16.11 percent to $49.64 billion in 2025, from $42.75 billion the year before, nearing the revised 2022 peak of $49.66 billion.
Biz groups flag planning risks
STILL, the proposed 15-percent rate has injected fresh uncertainty for exporters, business groups said.
According to the Philippine Chamber of Commerce and Industry (PCCI), the shifting tariff landscape reflects Washington’s efforts to protect domestic industries, but stressed that the situation remains fluid. “Whether the US is correct or not, they want to protect their own,” PCCI President Perry Ferrer told reporters in the PCCI office on Monday evening. “Only time will tell where this is going.” For Ferrer, the repeated tariff signals have prompted companies to reassess strategies, cautioning firms against straying too far from their core strengths even as they explore new markets. “What we’re coaching the business is really know your strengths,” he explained, adding that the uncertainty has pushed companies to look beyond traditional markets, including toward Europe amid ongoing free trade agreement talks. See “US tariff,” A2
PESO EXCHANGE RATES n US 57.7790 n JAPAN 0.3737 n UK 77.9496 n HK 7.3894 n CHINA 8.3699 n SINGAPORE 45.6318 n AUSTRALIA 40.7515 n EU 68.1041 n KOREA 0.0400 n SAUDI ARABIA 15.4016 Source: BSP (February 24, 2026)