DA chief on Trump tariff: Too early to assess impact on PH agri exports
In a statement on Wednesday, Agriculture Secretary Francisco Tiu Laurel Jr. said it was 'too early to assess,' whether the Philippine agriculture sector 'will gain or not from this trade deal with the US.'
Tiu Laurel said that its impact remains to be seen as 'many of our competitors are still negotiating for better terms.'
The Agriculture chief issued the statement after US President Donald Trump announced that the Philippines had agreed to allow American goods to enter the country tariff-free, while Philippine exports to the US would be charged a 19% tariff, which is higher than the original 17% rate and just below one percentage point below the 20% rate the US chief announced early this month.
President Ferdinand Marcos Jr. clarified that not all goods entering the Philippines from the US will get a zero tariff.
The Philippines' tariff rate imposed by the US is at par with Indonesia's, which was brought down from 32%.
Vietnam's exports to the US, meanwhile, will be charged a 20% rate, also down from the initial 46%.
America is also taxing goods transshipped —routed from other countries — from Vietnam at 40%.
Thailand and Cambodia have yet to finalize deals and face a proposed 36% tariff.
The DA said the Philippines enjoyed a $3.98-billion trade surplus with the U.S. in 2024.
However, in terms of agricultural trade, the country posted a deficit of $1.95 billion, albeit narrower than the $2.36-billion shortfall in 2023.
Coconut oil was the Philippines' top agricultural export to the US last year, generating $558.7 million.
On the other hand, the Philippines' top farm imports from the US included animal feeds ($1.36 billion), cereals and cereal products ($838.1 million), and other food and live animals ($384.1 million).
Tiu Laurel said that 'at first glance, the zero tariff on US agricultural imports could support the goal of the President of achieving a food-secure Philippines by lowering the cost of key inputs—especially for livestock production.' —VAL, GMA Integrated News
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