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Chile wrap up talks WASHINGTON SLAPS 12.5% PHL, on free-trade agreement TARIFF ON PHL EXPORTS
US trade policy, war send peso to new low
By Malou Talosig-Bartolome & Bless Aubrey Ogerio
H
OURS after a phone call with President Ferdinand Marcos Jr. and United States Secretary of State Marco Rubio’s meetings in Manila, President Donald Trump ordered the imposition of a 12.5-percent tariff on nearly all Philippine products.
WHAT IS A ‘SAFE-HAVEN’ CURRENCY?
FOREIGN Affairs Secretary Ma. Theresa P. Lazaro meets with Chilean Foreign Affairs Minister Francisco Pérez Mackenna during a bilateral meeting on the sidelines of the Association of Southeast Asian Nations (ASEAN) Foreign Ministers' Meetings in Pasay City on Friday, July 24, 2026. JAM STA ROSA/POOL PHOTO VIA AP
on July 24. However, goods already loaded onto vessels before that time and entered for US consumption before 12:01 p.m. Philippine time on July 28 are exempt from the new tariff. The decision came even as Philippine trade officials maintained throughout the investigation that forced labor is not prevalent in the country’s export sector. In its formal submission to the USTR earlier this month, the Department of Trade and Industry (DTI) said shipments denied entry into the US over forced-labor concerns totaled about $2.71 million, equivalent to roughly 0.01 percent of the $48.25 billion worth of Philippine goods imported by the US from 2023 through the first two months of 2026. The DTI also argued that Philippine-made products, including exports bound for the US, “do not rely on forced labor,” citing existing labor laws, enforcement mechanisms and trade data. According to the USTR report, the tariffs cover all Philippine exports except steel, aluminum, copper, wood products, vehicles, and semiconductors. Exemptions were also granted for civil aircraft, engines and parts, See “12.5% Tariff,” A2
By Andrea E. San Juan
W
ASHINGTON’S announcement that it is slapping fresh tariffs on goods produced by forced labor added another layer to global economic uncertainties--fueling the demand for safe-haven dollar assets and dragging the Philippine peso to a new record low on Friday. Data from the Bankers Association of the Philippines (BAP) showed the local currency closed at P61.847 against the greenback on Friday. This is 9.7 centavos weaker than its previous finish of P61.75 on Thursday. Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co., said attributed this to “rising crude oil prices as US and Iranian attacks escalated and new tariffs, renewing inflation concerns.” Asked about how the new tariffs announced by the United States government would fuel demand for the safe-haven currency, Ravelas told the BusinessMirror: “In simple terms, tariffs can strengthen the US dollar because they reduce demand for imported goods, which means fewer dollars are sent overseas.” At the same time, he said, tariffs can push up inflation in the US, making the Federal Reserve more cautious about cutting interest rates. “Higher US interest rates relative
to other countries tend to attract global capital into dollar assets, boosting demand for the US dollar,” he added. For his part, John Paolo R. Rivera, Senior Research Fellow at Philippine Institute for Development Studies (PIDS) said the peso’s drop to a new record low was largely driven by “external factors.” “Geopolitical tensions and trade policy uncertainties have also contributed to risk aversion, putting pressure on emerging market currencies, including the peso,” Rivera told this newspaper on Friday. Moving forward, the PIDS senior research fellow said the peso may remain under pressure in the near term as long as global uncertainties persist. “But I expect movements to remain broadly market-driven rather than disorderly,” added Rivera. Within the trading day, the peso traded from as strong as P61.78 to as weak as P61.85 per dollar. According to the Office of the United States Trade Representative (USTR), Washington announced that failure to impose and effectively enforce a prohibition on the importation of goods produced with forced labor would warrant a 10 percent or 12.5 percent tariff on 60 trading partners, subject to “certain product exemptions.” The USTR said the top 60 US trade partners cover 99.4 percent of US imports.
PEZA investment approvals surge to ₧151.9B in 7 months By Bless Aubrey Ogerio
T
HE Philippine Economic Zone Authority (Peza) said investment approvals continued to accelerate in January to July, driven largely by manufacturing projects and export-oriented investments despite lingering global trade and geopolitical uncertainties. The total approved investments reached P151.901 billion during the period, a 66.99-percent increase from P90.961 billion in 2025. The Peza Board approved 174 new and expansion projects, up 16 percent from 150 projects approved in the same period last year. “The first seven months of 2026 demonstrate that investor confidence in the Philippines remains strong. More importantly, we are seeing investments that are increasingly export-oriented, technology-driven, and aligned with the country’s long-term industrial development goals,” Peza Director General Tereso Panga said.
“We are seeing investments that are increasingly export-oriented, technologydriven, and aligned with the country’s longterm industrial development goals.”—Peza Director General Tereso Panga
The approved projects are projected to generate $5.905 billion in exports, almost three times the $2.003 billion recorded in the same period last year, or a 194.82-percent increase. They are also expected to create 26,047 direct jobs. Manufacturing remained the largest investment segment, accounting for 76 approved projects. It was followed by 28 information
technology-business process management (IT-BPM), 26 ecozone development, 15 facilities, 13 logistics, 10 domestic market, four tourism and two utilities projects. By location, 141 projects will be established in Luzon, 22 in the Visayas and 11 in Mindanao. The Netherlands emerged as the biggest investment source during the period, followed by South Korea, Singapore, Indonesia and Germany. Peza said its overall performance was supported by 25 bigticket projects worth a combined P131.661 billion, accounting for nearly 87 percent of total approved investments from January to July. For July alone, the Peza Board approved 17 new and expansion projects worth P11.212 billion, lower than the P18.599 billion approved in the same month last year. Despite the lower investment value, the agency said that the Julyapproved projects are expected to generate $2.538 billion in exports,
up 241.12 percent from $744 million a year earlier, while projected direct employment edged up to 2,907 jobs from 2,891. The July approvals consisted of six export manufacturing projects, four IT-BPM enterprises, three domestic market enterprises, two ecozone development projects, and two facilities projects. Four big-ticket projects worth P8.818 billion accounted for nearly 79 percent of the month’s approved investments. “While monthly investment values naturally vary depending on the mix of projects approved by the Board, what matters is that the investments entering our ecozones continue to strengthen the country’s export base, create quality employment, and position the Philippines deeper within global value chains,” Panga said. PEZA expects the latter half of 2026 to see more investment on ati leads turning into actual nI fl projects, boosting production capacity, exports and jobs.
was preceded by bilateral Joint Economic Commission meetings held in Manila in August 2023 and Santiago in November 2024, where both sides laid the groundwork and agreed on the scope of the proposed economic partnership. The first round of negotiations was conducted virtually in May 2025, followed by a second round in Santiago in July 2025 that tackled trade in goods, rules of origin, digital economy, services and investment disciplines. Negotiators then met in Manila in October last year for a final round of chapter-by-chapter text negotiations and tariff discussions. The conclusion fulfills one of the DTI’s trade negotiation targets after the agency earlier projected that talks with Chile would be wrapped up within the year. Separate negotiations with the European Union, Canada and the review of the Philippine-Japan Economic Partnership Agreement remain ongoing. See “Chile,” A2
PHL mulls over halting tax on cooking gas, kerosene By Reine Juvierre S. Alberto
T
HE Philippines could again suspend excise taxes on liquefied petroleum gas (LPG) and kerosene if the price of Dubai crude persists at elevated levels, Finance Secretary Frederick D. Go said. Asked if the Development Budget Coordination Committee (DBCC), which he co-chairs, would endorse another suspension of duties after fresh tensions in the Middle East pushed up local pump prices, Go said it is “possible.” “If the price of Dubai crude exceeds $80 for a period of 30 days, then it’s likely that we would recommend a similar suspension on LPG and kerosene,” he told reporters in a chance interview last Thursday after the signing an agreement for a grant facility from World Bank. The three-month suspension of excise taxes on LPG and kerosene, which resulted in revenue losses of P2.5 billion, was lifted last July 8, as Dubai crude price fell below an average of $80 per barrel for a month based on the Mean of Platts Singapore (MOPS). Under Executive Order (EO) No. 114, the DBCC, in coordination with the Department of Energy (DOE), could recommend to the President to temporarily suspend or reduce the excise tax on petroleum products when the average Dubai crude oil price based on MOPS reaches or exceeds $80 per barrel for one month. In a televised news program on Friday, DOE Oil Industry Management Bureau Director Rino Abad said the Dubai crude oil (Platts) is now priced at about $87 per barrel.
ROY DOMINGO
Washington alleged that the Philippines—along with 60 other economies—has inadequately enforced bans on goods produced by forced labor. In a notice released Friday, the Office of the United States Trade Representative (USTR) said it completed its Section 301 investigation and, after reviewing public comments, testimony, recommendations from the Section 301 Committee and advisory committees, as well as the direction of the US President, determined that additional duties were warranted. The USTR said a 12.5-percent tariff on Philippine products was the “appropriate response” to what it described as actionable trade practices under Section 301 of the US Trade Act. Philippine Ambassador to Washington Jose Manuel “Babe” Romualdez noted the new tariff rate is lower than the earlier 19-percent levy but said Manila will negotiate to bring it down further. “We are going to negotiate on the basis that we will remove the child‑labor goods from our list of exports if it is proven to be so,” Romualdez said. Trade Undersecretary Allan Gepty is heading the team. The additional duties took effect at 12:01 p.m. Philippine time
“In simple terms, tariffs can strengthen the US dollar because they reduce demand for imported goods, which means fewer dollars are sent overseas.” — Jonathan L. Ravelas, senior adviser at Reyes Tacandong & Co.
BM Graphics: Ed Davad
TOM FIX VIA CANVA
WHEN GLOBAL UNCERTAINTY RISES... Investors move money into: →US Dollar →US Treasuries →Gold This increases demand for dollars →The dollar strengthens →Currencies like the peso weaken
T
HE Philippines has reached another trade milestone following the conclusion of its negotiations with Chile for a Comprehensive Economic Partnership Agreement (Cepa) nearly two years after they launched formal talks. The Department of Trade and Industry (DTI) made this announcement in a Facebook post on Friday. The event coincides with the 80th anniversary of diplomatic relations between the Philippines and Chile. Trade Secretary Ma. Cristina Roque said she welcomes the “successful conclusion” of the negotiations during her meeting with Chilean Foreign Minister Francisco Pérez Mackenna. Negotiations for the Philippines’s first bilateral trade pact with a Latin American country formally began in December 2024 after Roque and then Chilean Foreign Minister Alberto van Klaveren signed a joint statement in Manila launching the talks. The agreement, however,
Another round of oil price adjustments is expected next week, with gasoline increasing by P6 to P7 per liter, diesel by P6 to P7 per liter and kerosene by P3 to P4 per liter, Abad said. This week, the price of kerosene rose by P11.77 per liter, while gasoline and diesel prices went up by P3.65 per liter and P10.68 per liter, respectively, this week, according to the Department of Energy (See: https://businessmirror.com.ph/2026/07/20/ fresh-mideast-tensions-spur-higher-pump-prices/). This comes after prices in the world oil market surged, driven by elevated geopolitical risk premiums as a result of Iranian attacks in the Strait of Hormuz and subsequent US retaliatory strikes. The Middle East war continues to escalate as Iran-backed Houthis claimed their first attack on commercial ships on Thursday, opening a new front in the crisis that has disrupted global energy supplies, Bloomberg reported. The Yemen-based militant group said it targeted two Saudi Arabian oil tankers in the Red Sea with missiles and drones. US President Donald Trump threatened “major military punishment” in the event of further attacks on vessels in the Red Sea and was considering a “massive attack” on Iran.
PESO EXCHANGE RATES n US 61.7450 n JAPAN 0.3770 n UK 82.2320 n HK 7.8750 n CHINA 9.1100 n SINGAPORE 47.7977 n AUSTRALIA 43.0239 n EU 70.2658 n KOREA 0.0419 n SAUDI ARABIA 16.4500 Source: BSP (July 24, 2026)