By Chloe Mari A. Hufana,Reporter
THE PHILIPPINES has enough skilled workers to meet the labor demand of foreign manufacturers that may be thinking of moving their operations to avoid sky-high reciprocal tariffs imposed by US President Donald J. Trump on certain nations including China, an analyst said.
The Philippines has been slapped a 17% reciprocal tariff earlier this month, one of the lowest in a trade war that used to be limited to two of the world’s economic giants.
The reciprocal tariffs have since been suspended for 90 days pending negotiations.
They are set to resume in mid-July.
Josue Raphael J. Cortez, diplomacy lecturer in De La Salle-College of St. Benilde, said the Philippines is well positioned to support global trade by serving as a gateway.
“The Philippines holds an integral role in the furthering of global trading,” he said in a Facebook Messenger chat. “This is because the Indo-Pacific region, particularly our region, is considered as the gateway which links our partners from the West with their Eastern counterparts.”
Despite not having the same extent of power and resources as economic superpowers, the Philippines can leverage its strategic location in negotiations, as more countries pursue their interests in the region with the Philippines as a top choice ally.
The country’s relation with the US also remains as among Washington’s most vibrant partnerships, Mr. Cortez said, noting that it ranked among the Philippines’ top trading partners. Similarly, Manila was ranked third after China and Japan as the US’ largest trading partner in the region in 2022.
“That being said, we cannot, of course, speculate if the US will concede with the tariffs as ‘transactional diplomacy’ is the name of the game today,” he said.
“Instead, what may serve as impetus for the US to lower — or eradicate — the reciprocal tariffs imposed is by showing to the Trump regime that we know how to maintain our alliances wisely, and that we are as committed as them in our longstanding formal ties.”
During his second term, Mr. Trump reinstated aggressive tariff policies.
These measures, aimed at addressing trade imbalances and protecting US industries, introduced substantial tariffs on imports from almost all its trading partners.
NO SPECIAL ORDERLabor chief Bienvenido E. Laguesma said the Department of Labor and Employment has been implementing Philippine President Ferdinand R. Marcos, Jr.’s directive to intensify worker upskilling and reskilling even without any new or “special” order tied to recent shifts in global tariff policies.
“From the very start, the President instructed us to be proactive — to anticipate both internal and external developments that could impact our workers and employers,” he added in a Viber chat.
The Labor Secretary underscored that the government’s employment strategies have long been in place, anchored on the Labor and Employment Plan 2023–2028 and the National Technical Education and Skills Development Plan 2023–2028.
Both are aligned with the broader Philippine Development Plan and are designed to prepare the workforce for shifts in global trade, such as changes in tariff regimes or emerging trading rules, he noted.
Manufacturing has also been identified as a priority sector for job generation under these plans, with expectations for the creation of quality and sustainable employment.
“While we welcome favorable treatment, arrangement or policy that puts us in an advantageous position, we do not take comfort nor simply capitalize on the misfortunes of other countries,” he added, noting the steep tariff rates slapped on neighboring nations.
Officials had earlier noted the 17% tariff that will be imposed on the Philippines is lower than those imposed on other Southeast Asian nations.
It is the second lowest reciprocal tariff from Washington, following Singapore with 10%.
The Philippine Department of Trade and Industry said this as a chance to attract manufacturing investments diverted from countries with higher tariffs.
Special Assistant to the President for Investment and Economic Affairs Secretary Frederick D. Go is also preparing for a trip to the US in May to meet with the US Trade Representative to open a dialogue on the imposed tariffs, with an eye toward securing a potential free trade agreement.