The Philippines stands to benefit from a sweeping US tariff overhaul that has disrupted global trade flows, a new study showed, as the country emerges among the least exposed Southeast Asian economies to new US duties targeting imports.
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The Philippines has not been spared from the global trade wars triggered by US President Donald Trump’s tariffs, but it faces a comparatively modest 17 per cent tariff, the lowest among five regional economies covered by the study – Malaysia, Thailand, Indonesia, Vietnam and the Philippines.
Still, the Philippines lacks the infrastructure and investment to take quick advantage, it said.
Vietnam and Thailand are subject to much steeper rates of 46 per cent and 36 per cent, respectively, though those have been paused until July.
The study by Philippine Institute for Development Studies created a Tariff Exposure Composite Index to assess how vulnerable each country is to the new US levies. The Philippines and Indonesia both scored 2.2, placing them in the moderate risk category. But their positions differ significantly.
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While both share the same risk score, Indonesia is considered more exposed due to its higher 32 per cent tariff and a narrower exemption coverage – only about 10 per cent of its exports to the US are shielded, the study showed. Its main exports, such as palm oil and footwear, are also highly sensitive to price increases.