Tariff Negotiations With US 'Not Finished', Says Philippines
President Ferdinand Marcos flew back to the country late Wednesday after a three-day trip to Washington that saw him emerge from a meeting with Donald Trump having shaved a single point off a 20 percent levy on Filipino goods.
What might "seem like a very small concession" was in fact a "significant achievement", Marcos told reporters who questioned if the Philippines -- a longtime US treaty ally -- was getting the short end of the stick.
The US president, meanwhile, touted "zero tariffs" on American goods headed to the archipelago nation of 115 million.
But Marcos economic adviser Frederick Go said Thursday that tariffs would not be dropped in every category.
"The negotiations are not yet finished. Our technical working groups will continue to work with their counterparts from America to finalize the details of this arrangement," he told reporters in Manila.
"There are still many things to be discussed."
Since the Trump meeting, the Marcos administration has downplayed the potential effects of the tariffs, noting just 16 percent of the country's exports go to the United States, with about two-thirds being electronic components not subject to levies.
On Thursday, Go said that while tariffs would disappear for certain agricultural products like soy and wheat, key areas such as sugar, corn, rice, fish and pork would remain protected for Filipino farmers.
"I can guarantee to you we studied our biggest industries in the country where we are a significant market producer. We didn't include those in our arrangements with the United States," he said.
Go also touted the benefit to Filipino consumers of dropping some tariffs, particularly on pharmaceuticals.
"Medicines are expensive in the Philippines. If they are tariff-free, then that can lower the price of medicine in our country," he said.
Jesus Felipe, an economics professor at Manila's De La Salle University, told AFP the actual number of Philippine exports hit by the full tariff would likely be low.
"That's the number (19 percent) that has been flagged, but our feeling is that many products -- a substantial share of Philippine exports to the US -- will have to be exempted."
While predicting the effect on Philippine GDP would effectively be "nothing", Felipe said the "imperialist attitude" with which the United States was treating smaller countries remained worrying.
Countries with far larger US trade deficits like China, Mexico and Canada had "much more power and leverage" to fight back, he said.
"The Philippines cannot retaliate."
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Int'l Business Times
5 hours ago
- Int'l Business Times
Europe Hopes For 'No Surprises' As US Weighs Force Withdrawals
After keeping Donald Trump happy with a pledge to up defence spending at NATO's summit, Europe is now bracing for a key decision from the US president on the future of American forces on the continent. Washington is currently conducting a review of its military deployments worldwide -- set to be unveiled in coming months -- and the expectation is it will lead to drawdowns in Europe. That prospect is fraying the nerves of US allies, especially as fears swirl that Russia could look to attack a NATO country within the next few years if the war in Ukraine dies down. However, the alliance is basking in Trump's newfound goodwill following its June summit in The Hague, and his officials are making encouraging noises that Europe will not be left in the lurch. "We've agreed to no surprises and no gaps in the strategic framework of Europe," said Matthew Whitaker, US ambassador to NATO, adding he expected the review to come out in "late summer, early fall". "I have daily conversations with our allies about the process," he said. While successive US governments have mulled scaling back in Europe to focus more on China, Trump has insisted more forcefully than his predecessors that the continent should handle its own defence. "There's every reason to expect a withdrawal from Europe," said Marta Mucznik from the International Crisis Group. "The question is not whether it's going to happen, but how fast." When Trump returned to office in January many felt he was about to blow a hole in the seven-decade-old alliance. But the vibe in NATO circles is now far more upbeat than those desperate days. "There's a sanguine mood, a lot of guesswork, but the early signals are quite positive," one senior European diplomat told AFP, talking as others on condition of anonymity. "Certainly no panic or doom and gloom." The Pentagon says there are nearly 85,000 US military personnel in Europe -- a number that has fluctuated between 75,000 and 105,000 since Russia's 2022 invasion of Ukraine. "I think it is inevitable that they pull out some of their forces," a second European diplomat told AFP. "But I don't expect this to be like a dramatic overhaul. I think it's going to be gradual. I think it's going to be based on consultations." Trump's first target is likely to be the troops left over from a surge ordered by his predecessor Joe Biden after Moscow's tanks rolled into Ukraine. Officials say relocating the rump of that 20,000-strong deployment would not hurt NATO's deterrence too much -- but alarm bells would ring if Trump looked to cut too deep into personnel numbers or close key bases. The issue is not just troop numbers -- the US has capabilities such as air defences, long-range missiles and satellite surveillance that allies would struggle to replace in the short-term. "The kinds of defence investments by Europe that are being made coming out of The Hague summit may only be felt in real capability terms over many years," said Ian Lesser from the German Marshall Fund think tank. "So the question of timing really does matter." Washington's desire to pull back from Europe may be tempered by Trump now taking a tougher line with Russia -- and Moscow's reluctance to bow to his demands to end the Ukraine war. "It seems an inopportune moment to send signals of weakness and reductions in the American security presence in Europe," Lesser said. He also pointed to Trump's struggles during his first term to pull troops out of Germany -- the potential bill for relocating them along with political resistance in Washington scuppering the plan. While European diplomats are feeling more confident than before about the troop review, they admit nothing can be certain with the mercurial US president. Other issues such as Washington's trade negotiations with the EU could rock transatlantic ties in the meantime and upend the good vibes. "It seems positive for now," said a third European diplomat. "But what if we are all wrong and a force decrease will start in 2026. To be honest, there isn't much to go on at this stage."
Int'l Business Times
5 hours ago
- Int'l Business Times
US Tariff Tussles Stuff Of Nightmares For Bordeaux Winemakers
French wine producers, already reeling from a downturn in their market, still do not know how bitter a taste the US tariffs on wine will leave on their palates. In southwestern France, around the Bordeaux region's famed vineyards, months of talk on what US President Donald Trump will decide on tariffs have been the stuff of nightmares for producers as they look on helplessly. The United States is by far the top export market for Bordeaux's wine, accounting for 400 million euros ($470 million) worth of annual sales -- or about 20 percent of the total. China lags behind with 300 million euros ahead of the United Kingdom with 200 million. Sunday's announcement of a trade deal between the United States and the European Union did not clear up what tariffs European wine and spirits producers will face in the United States. While Trump said European exports face 15 percent tariffs across the board, both sides said there would be carve-outs for certain sectors. EU head Ursula Von der Leyen said the bloc still hoped to secure further so-called "zero-for-zero" agreements, notably for alcohol, which she hoped to be "sorted out" in the coming days. Philippe Tapie, chairman of regional traders' union Bordeaux Negoce, which represents more than 90 percent of the wine trade in the Bordeaux area, is worried by the uncertainty. "One day, it is white, the next it is black -- the US administration can change its mind from one day to the next and we have no visibility," he told AFP. In mid-March, Trump had threatened Brussels with 200 percent tariffs on alcohol in response to a proposed EU tax on US bourbon. Then in April he brandished a new threat of 20 percent across the board on EU products, a threat ultimately suspended. Since then, the level first held at ten percent but, in late May, the US leader threatened to revert to 50 percent before pivoting to 30 percent starting August 1st, the deadline for the negotiations with the EU that led to a preliminary accord after Trump and Von der Leyen met in Scotland on Sunday. "At 10 percent or 15 percent, we'll find solutions. At 30 percent, no. End of story," Tapie warned just ahead of the announcement as he criticised a "totally unpredictable American administration". To export wine, "there's a minimum of 30 days by boat. If you go to California, it's 60 days. We can't think in terms of weeks," says Tapie, who says he has "never been confronted with such a situation" in 30 years of business. Twins Bordeaux, one of Bordeaux's leading wine merchants, also laments the tariffs' impact. "The American market represents about a third of our turnover, or around 30 million euros," explains Sebastien Moses, co-director and co-owner of Twins, which usually ships upwards of a million bottles a year to the United States. Since January, "our turnover must have fallen by 50 percent compared to last year," he says. "So far, we've managed to save the situation, because as soon as Donald Trump was elected we anticipated this and sent as much stock as possible to the US," explains Moses, though longer term he says this is not a "stable" strategy. As an attempted work around Twins Bordeaux even shipped cases of around 10,000 bottles by air in March. "But only very expensive wines, at no less than 150-200 euros per bottle, because by air it's at least two and a half times the price of shipping by sea," he said. For Bordeaux wine merchant Bouey, the US market represents less than 10 percent of its exports. "We have long since undertaken a geographical expansion. Faced with the global chaos, commercial strategies can no longer be based on a single- or dual-country strategy," Jacques Bouey, its CEO, told AFP in April. The tariffs come with the industry already struggling with declining consumption that has led to overproduction and a collapse in bulk prices. By early 2023, a third of Bordeaux's approximately 5,000 wine growers admitted to being in difficulty. "We're starting to become world champions in terms of accumulating problems," complained Tapie.
Int'l Business Times
7 hours ago
- Int'l Business Times
What Is The Status Of US Tariff Negotiations?
US tariff negotiations with key trading partners have shifted into high gear as economies race to avoid steeper duties before an August 1 deadline. Many of these tariff hikes were part of a package first announced in April, under which dozens of economies were due to face higher levies -- up from a 10 percent level -- over their trade surpluses with the United States. The twice-postponed deadline for duties to take effect is now Friday, August 1. But Washington has expanded its group of targets coming up against these tariffs, while announcing agreements with the European Union, Britain, Vietnam, Japan, Indonesia and the Philippines. A deal with the European Union unveiled on Sunday sees a 15 percent tariff imposed on European exports to the United States, down from the 30 percent that Trump earlier threatened. Where do other US trade talks stand? Seoul is racing to reach a deal with Washington, as Tokyo's success in landing an agreement has "amped up the pressure for South Korea," a government source told AFP. Local media reported that Seoul was preparing to propose more than $100 billion in investment as part of a broader agreement, with expected participation by major firms such as Samsung and Hyundai Motor. The South Korean government did not confirm this. But South Korean officials have outlined proposals to deepen collaboration in sectors like shipbuilding, semiconductors and batteries. National Security Advisor Wi Sung-lak has told reporters that the two countries are in "the final and most crucial phase of negotiations" to avert Trump's proposed 25 percent duty. Indian Commerce Minister Piyush Goyal told Bloomberg Television Thursday that he was optimistic his country could reach an agreement with the United States to avert Washington's 26 percent tariff threat. Goyal insisted there were not any sticking points in the US-India relationship or in trade talks, and clarified that immigration rules --- including those around H-1B visas for skilled workers -- had not come up in negotiations. Despite Goyal's remarks, local media reported the prospects of an interim deal before August 1 had dimmed. Taiwanese Premier Cho Jung-tai said Thursday that officials are "working hard" on negotiations, amid worries that an unfavorable tariff level could hit the self-ruled island's economy. Vice President Hsiao Bi-khim said Taipei's negotiating team was "working almost 24 hours a day to achieve trade balance and Taiwan's industrial interests, and even to further deepen cooperation." Although Canada and Mexico were spared from Trump's "reciprocal" tariffs announced in April, goods from both countries entering the United States generally face a separate 25 percent duty if they fall outside a North American trade pact. This figure stands to jump to 30 percent for Mexico come August 1, while the level for Canada was set at 35 percent. Mexican President Claudia Sheinbaum said her administration was "doing everything" possible to avert the duties and that she would speak with Trump if necessary to try to reach a pact. Trump told reporters Friday there was no deal with Canada so far. Brazil is girding for a virtual trade embargo on its planes, grains and other goods if Trump's threatened 50 percent tariff on its exports takes effect on August 1. The United States runs a trade surplus with Latin America's biggest economy, which was not originally expected to face steeper tariffs under Trump's "reciprocal" duties plan. Trump has not attempted to hide the political motivation in targeting Brazil, citing a judicial "witch hunt" against his right-wing ally, former president Jair Bolsonaro, when he unveiled the tariff rate. The political nature of the spat makes a last-minute deal appear less likely.
