PCCI Warns of Potential Economic Disruptions Due to New U.S. Tariffs

As global economic tensions rise, mainly through tariffs and trade wars between major powers, countries like the Philippines find themselves in a vulnerable position. While not directly involved in the disputes between giants like the U.S. and China, the Philippines, being an open, trade-dependent economy, feels the ripple effects deeply.

In an era where the world is tightly connected through supply chains, finance, and digital platforms, the Philippines must remain alert, adaptive, and strategic in responding to these global shocks.

What Are Tariffs and Trade Wars?

Tariffs are taxes imposed on imported goods, often used to protect local industries. When countries retaliate with their own tariffs, it escalates into a trade war, disrupting global commerce and raising prices across economies.

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The U.S.-China trade war, for example, had a global impact, slowing down trade volumes, shifting supply chains, and creating economic uncertainty. Though the Philippines wasn’t a direct participant, it still suffered collateral damage due to its ties with both nations.

How It Impacts the Philippines

Export Industry at Risk

The Philippines heavily relies on exports, particularly electronics, semiconductors, and agricultural goods. Trade wars that affect global demand or disrupt trade routes can result in slower export growth, loss of orders, and lower foreign earnings.

Inflation and Higher Costs for Consumers

Tariffs drive up the prices of imported goods and raw materials. As costs increase, Filipino businesses often pass them onto consumers. This can worsen inflation—already a concern due to global fuel prices and food shortages—making everyday life harder for ordinary citizens.

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Job Uncertainty in Key Sectors

Trade-related industries such as manufacturing, electronics, and BPOs may face a slowdown if international demand shrinks. When multinational corporations adjust their operations or shift to other countries, Filipino jobs are at risk.

Weaker Peso and Financial Volatility

Global trade tensions often affect investor confidence. Capital flight to safer economies can weaken the Philippine peso, raise borrowing costs, and create financial instability, especially for a country still recovering from the economic effects of the pandemic.

Limited Buffer for Economic Shocks

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Unlike some countries, the Philippines has limited fiscal and foreign reserves to cushion the impact of a prolonged trade war. A lack of contingency planning and slow policy response could amplify the damage.

Dependency on Imported Essentials

From oil and fuel to machinery and food items, the Philippines imports many of its essentials. Any disruption in global trade or spike in international prices can directly affect supply and affordability at home.

What Can the Philippines Do?

Despite the risks, there are paths forward:

Diversify Trade Partners: Strengthen ties beyond traditional allies—look more to ASEAN, the EU, India, and Africa.

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Strengthen Local Industries: Invest in agriculture, manufacturing, and tech to reduce import dependence and improve food and energy security.

Develop Strategic Reserves: Build buffers like food stocks, fuel storage, and emergency funds to prepare for external shocks.

Support Innovation and MSMEs: Help small businesses upgrade their competitiveness and connect to global value chains.

Push for Multilateralism: Stay active in trade negotiations and regional blocs to protect Philippine interests.

Conclusion

While the Philippines may not be a driver of global trade tensions, it cannot afford to be a passive observer. The country must adapt swiftly, build resilience, and invest in long-term solutions that protect the economy and the Filipino people.

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Tariff and trade wars remind us of a harsh truth: In an interconnected world, economic decisions made far away can hit close to home. But with smart policies, strategic leadership, and a united citizenry, the Philippines can not only survive—but thrive.

Pagadian City is buzzing with excitement as Robinsons Pagadian opens its doors, bringing a fresh wave of retail and entertainment options to the community. This highly anticipated mall promises to deliver an unparalleled shopping experience, featuring a remarkable lineup of both national and local brands, state-of-the-art cinemas, and innovative attractions for customers of all ages.

The mall was officially inaugurated by distinguished guests, including (from L-R):

• Faraday Go, Robinsons Land Executive Vice President and Business Unit General Manager

• Robina Gokongwei-Pe, Chairman of Robinsons Retail Holdings Inc.

• Hon. Sammy Co, Mayor of Pagadian City

• Lance Gokongwei, President and CEO of JG Summit Holdings

• Most Reverend Archbishop Martin Jumoad

• Hon. Victor Yu, Governor of Zamboanga del Sur

• Mybelle Aragon-GoBio, Robinsons Land President and CEO

• Stanley Co, President and CEO of Robinsons Retail Holdings Inc.

Robinsons Pagadian is one of eight Robinsons malls across Mindanao, continuing the brand’s commitment to enhancing the retail landscape in the region.

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Starting Tuesday, April 8, consumers will benefit from lower gasoline and kerosene prices, following the US’s imposition of significant tariffs on products from various countries, including the Philippines.

The price adjustments, as announced by Shell Philippines and Seaoil Philippines, are as follows:

• Gasoline: ₱0.10/liter decrease

• Kerosene: ₱0.50/liter decrease

• Diesel: No change

Cleanfuel and Petro Gazz will also implement similar reductions for gasoline.

In a broader context, Wall Street is preparing for potential losses due to these tariffs, while oil prices continue to fall, with US oil dropping below $60 per barrel, the lowest level since April 2021.

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These changes reflect the ongoing impact of the US tariffs, which have created ripples across global markets.