Phl bracing for impact of US-China trade war

The Philippines is bracing for the impact of a trade war between the United States and China, a conflict some sectors fear could lead to a global economic slowdown.

Presidential spokesman Harry Roque said the trade and finance departments are determining which Philippine exports are vulnerable to the dispute between two of Manila’s biggest trading partners.

“For some products that we export to China which are in turn further re-exported to the US, so in that sense there will be some effect on us. But we are of course studying and preparing for eventuality,” Roque said at a press briefing yesterday at Malacañang.

Concerned agencies “are assessing if some of our biggest exports to both the US and China would be affected. Take note that the tariff will be for goods originating from China and the US,” he added.

US President Donald Trump has imposed tariffs on billions worth of Chinese exports and accused the Asian giant of intellectual property theft.

Last week, the US slapped a 25 percent tariff on $34 billion in imports from China, a move that the Chinese government described as “typical trade bullying.” China, the Philippines’ top trade partner, has promised to retaliate with an equivalent imposition on American products. It has also accused the US of starting what it described as “the biggest trade war in economic history.”

Foreign Affairs Secretary Alan Peter Cayetano earlier admitted that the trade tiff would affect the Philippines.

“If the US is sneezing and China is coughing, the Philippines will be somehow susceptible to the flu. There are flu shots available. The economic team is trying to do everything to bullet-proof our economy but there’s no such thing,” Cayetano said in a recent interview.

“We’re hoping this will be short-lived and we’re hoping it won’t affect us too much,” he added.