Phl to benefit from steel, aluminum tariffs
The Philippines may benefit from US tariffs on steel and aluminum, according to Trade and Industry Export Marketing Bureau executive director Senen Perlada.
As far as the US imposition of tariffs on aluminum and steel are concerned, Perlada said it presents an upside and downside for the Philippines.
With the Philippines expected to be heavy users of these products because of its Build Build Build program, Perlada said the country could expect better prices for steel and aluminum because of the tariffs.
“It can be a silver lining for us because we are not a big player, but we are huge consumers of that. They will have to find alternative markets for these products and that may translate into reduced prices, which is just in time for us because of our Build Build Build program,” he said.
"What we don't want to happen is a so called all-out trade war. Nobody benefits out of a trade war. Nobody wants to fall victim and be collateral damage to the big boys," Perlada said.
"History will tell us that it doesn't work when countries veer away from globalization and the kind of opportunities that prevents other countries from benefiting from a healthier global economy," the trade official said.
The Trump administration slapped tariffs on steel and aluminum from Europe, Mexico and Canada, while China is threatened with separate duties.
Over the weekend during the annual G-7 summit in Quebec, US President Donald Trump pulled out of a joint statement, further sparking flames for a trade war.
"What happened in Quebec really shows the ethnocentricity of the current American leadership in terms of considering the US market as superior to all others. It seems this is not boding well for globalization," Perlada said.
"We in the Philippines, we're kind of interested to look and see what will happen. We're not quite a big player so we really just have to prepare either way what happens. As far as DTI is concerned, we still believe in globalization and the opportunities that it presents to the Philippines. In the case of US market, we still have the US GSP that's covered by law. So we still have that window where a lot of products from the Philippines will still be able to enter US market on a preferential basis," he said.