PH Economic Chief Sees Investment Opportunity in Trump’s 17% Tariff on Philippine Goods

Despite concerns over U.S. President Donald Trump’s new 17% tariff on Philippine goods, the Marcos administration’s economic czar, Frederick Go, views it as a potential advantage rather than a setback.

Speaking at SGV’s 2025 Philippine CEO Outlook in Makati, Go said the tariff—while not ideal—could actually benefit the Philippines by positioning it as a competitive destination for foreign investment, especially when compared to higher tariffs imposed on other Asian countries.

Go noted that countries like China (54%), Vietnam (46%), Thailand (36%), and Indonesia (32%) are facing much steeper duties on exports to the U.S. “From my perspective, this opens up a lot of opportunities… We could attract companies to relocate their manufacturing operations to the Philippines,” he said.

The U.S. is currently the Philippines’ top export market, accounting for 80.2% of total exports in 2024, valued at $58.7 billion. Despite this strong trade relationship, the U.S. had a $4.9 billion trade deficit with the Philippines last year, prompting the tariff inclusion under Trump’s trade policy.

Economist Michael Ricafort of Rizal Commercial Banking Corp. cautioned that while the tariff could slow U.S. demand for Philippine goods, it may also prompt multinational firms to consider shifting production to the Philippines due to its relatively lower import tax.

Go emphasized that the Philippines’ strong ties with the U.S. could help it attract more American investments in the wake of these new tariffs.