November 8, 2024 | 8:58am
MANILA, Philippines — Donald Trump has secured a second term as the president of the United States, leaving political and economic experts across the world wondering: what now?
For the Philippines, Trump’s win may signal the need to urgently diversify its market.
The Philippines has deep historical and economic ties to the US, which is one of the country’s top trading partners as of 2023.
In a recent press briefing, National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan was asked about the implications of Trump’s return for the Philippine economy.
Balisacan replied it was too early to comment on the matter, but said the Philippines is ready to work with any government.
He did, however, express concern that Trump’s potential tariffs on imports from China and other countries could impact the global economy.
“That could have an impact on the global economy and that’s what will worry us,” Balisacan said.
Asked if Trump’s inward policies have prompted the need to seek other investment opportunities and markets, Balisacan responded with “yes.”
Trump has floated the idea of imposing a 60% tariff on Chinese imports and a 20% tariff on imports from other countries.
“Hopefully the US will not go that far, because it’s not even in their long-term interest, to be accurate, to isolate the economy, because eventually it will backfire in terms of inefficiencies,” Balisacan said.
Higher US tariffs would mean higher domestic prices, which could add pressure on US inflation and reduce the purchasing power of American consumers, according to Balisacan.
To shield itself from external shocks, including rising protectionism, Balisacan said the Philippines would need to implement internal reforms to strengthen its economy.
Even before Trump’s win, the Philippines had been actively working to diversify its economic partnerships, the country’s economic development czar said.
“We have been more aggressive in opening up other channels, like our free trade agreements with other countries,” Balisacan noted, citing the recent free trade agreement with South Korea.
On November 5, Trump secured a second, non-consecutive win following one of the most polarizing elections in US history.
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