Gatchalian: Trump’s 17% tariff on PH exports to US has minimal impact

MANILA, Philippines — Sen. Sherwin Gatchalian believes that the 17-percent tariff that United States (US) President Donald Trump imposed on Philippine exports will not affect the country’s economic growth.

READ: Trump sets 17% tariff on Philippine goods coming to America

At a press briefing on Monday afternoon, Gatchalian said Trump’s move could, in fact, have a minimal impact on the Philippines.

“Tiningnan ko ang list ng mga ine-export natin sa US. Marami roon ay electronics, saka intermediary parts. Ibig sabihin yung mga parts na ginagawa dito, pagdating doon ay ikakabit sa mga semiconductors o ibang parts pa para mabuo ang end product,” said Gatchalian.

(I am looking at the list of what we’re exporting from the US. Most of them are electronics and intermediary parts. That means the parts are being built here, and only then will be connected to semiconductors and other parts in order to complete the end product.)

He then proceeded to paint a picture of its effect, explaining that end products would see a price increase with this development.

“In the short term, tingin ko minimal impact sa atin kasi hindi end product ang ginagawa natin. Ginagawa yun sa US, ang pinaka end product,” said Gatchalian.

(In the short term, it will only have a minimal impact on us because we don’t create the end product. It’s being conducted there in the US.)

“But in the long term, baka magkaroon din ng destruction kasi baka may manufacturers na ililipat na lang sa US rather than dito gagawin para hindi sila maharap sa tariff,” he added.

(But in the long term, it might destroy because there are manufacturers who would prefer to move to the US instead of creating it here in the Philippines so that they would not face the tariff.)

Later in the press conference, the senator was asked if an economic recession is possible following Trump’s move, but he answered in the negative. According to Gatchalian, he doesn’t think that the Philippines will lead to a recession because of this.

“I don’t think aabot tayo dyan. Our fundamentals are strong and yung bansa natin is a consumer-based economy so malakas pa rin ang consumption natin. So as long as mababa ang inflation, we will still remain strong. I don’t think itong tariff will affect our economic growth,” he simply said.

(I don’t think we will reach that. Our fundamentals are strong and our country is a consumer-based economy so our consumption is strong. So as long as the inflation remains low, we will remain strong. I don’t think this tariff will affect our economic growth.)

The senator said he would personally ask the Senate Panel on Trade, Commerce, and Entrepreneurship to lead a probe into the matter.

“I think Congress and the Senate should conduct a hearing on this para maintindihan ng lahat. Alam ko, very complicated yun… Pero dapat maintindihan din natin kung anong impact nito sa trabaho, anong impact nito sa economic growth natin, kung may impact ba ito to our currency,” he said.

(I think the Congress and the Senate should conduct a hearing on this in order for all to understand. I know it’s very complicated, but we need to understand its impact on jobs, our economic growth, and on our currency.)