THE Federation of Filipino Chinese Chambers of Commerce and Industry, Inc. (FFCCCII) said the 12.5% US tariff on the Philippines will discourage investment and disrupt supply chains.
“Economists continue to warn that higher tariffs raise costs for consumers, disrupt supply chains, discourage investment, and slow economic growth,” FFCCCII President Victor Lim said in a statement late Tuesday.
“At the same time, it may also increase costs for American businesses and consumers while weakening resilient supply chains that have benefited both our economies,” he added.
The US imposed a 12.5% tariff on Philippine exports after the US Trade Representative ruled that the Philippines failed to restrict imports of goods made with forced labor.
The levy is expected to mainly affect Philippine exports of leather and travel goods, apparel, footwear, and toys.
“This tariff sends a troubling signal that does not reflect the trust, goodwill, and partnership that have long defined our bilateral relationship,” Mr. Lim noted.
He added that protectionist trade measures do not benefit either trading partner.
“History offers a clear lesson: protectionism ultimately harms both those who impose it and those upon whom it is imposed,” Mr. Lim said.
FFCCCII said it hopes to work with its US partners to advance an open and fair global trading system, Mr. Lim said.
“We respectfully appeal to the government of the United States to reconsider this policy and to engage the Philippines in constructive dialogue,” he added.
The Department of Trade and Industry expects about 34.28% of Philippine exports to the US, equivalent to $6.25 billion, to be affected by the 12.5% levy. — Beatriz Marie D. Cruz
