Philippine economists and the nation’s chip industry have sounded the alarm over US President Donald Trump’s proposal to impose 100 per cent tariffs on semiconductor exports to America, warning of potentially devastating consequences.
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While concerns are mounting, some observers remain optimistic that Manila may weather the storm, pointing to the “Taco” (“Trump always chickens out”) slogan that has gained prominence in recent months – a nod to the mercurial president’s reputation for reversing course or calling other countries’ bluffs.
Last week, Trump revealed plans to levy hefty tariffs on imported semiconductors, though he dangled exemptions for companies willing to relocate their supply chains to the United States as part of his push to reshore electronics manufacturing.
Exporters in the Philippines are bracing for the “devastating” consequences of such a move, according to Dan Lachica, president of the Semiconductor and Electronics Industries in the Philippines, speaking to local media.
Semiconductors account for as much as 70 per cent of the Philippines’ exports, with 15 per cent of these destined for the US, Lachica said.
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