Philippines Most Insulated from US Tariff Risks

Economists express concern over the potential impact of proposed universal tariffs by US President-elect Donald Trump, which could reach 10 to 20%. Ernie Goss from Creighton University highlights that such tariffs could create economic uncertainty and retaliatory measures from trade partners, negatively affecting US manufacturers and agriculture. In Brazil, experts warn that these tariffs could severely harm the manufacturing sector, leading to increased unemployment and income inequality. Meanwhile, the Philippines is viewed as relatively insulated from these tariff risks, with HSBC economists indicating that its minimal goods export exposure to the US mitigates potential negative impacts. The Philippines-Korea Free Trade Agreement, effective from December 31, 2024, is expected to enhance market access for Philippine products, providing a counterbalance to the looming trade tensions. Overall, while some nations face significant threats from US tariff policies, the Philippines may benefit from its strong service sector and trade relationships with other countries.