What does Donald Trump's return mean for the economic relations between the Philippines and the US?
For the Philippines, Trump's victory could signal the need to quickly diversify its market.
The Philippines has deep historical and economic ties with the US, which has been one of the country's main trading partners since 2023.
In a recent press briefing, Arsenio Balisacan, Secretary of the National Economic and Development Authority (NEDA), was asked about the implications of Trump's return for the Philippine economy.
Balisacan responded that it was too early to comment on the matter, but stated that the Philippines is ready to cooperate with any government.
Gayunpaman, ipinahayag niya ang pag-aalala na ang potensyal na taripa ni Trump sa mga import mula sa Tsina at iba pang mga bansa ay maaaring makaapekto sa pandaigdigang ekonomiya.
However, he expressed concern that Trump's potential tariffs on imports from China and other countries could affect the global economy.
When asked if Trump's inward policies had prompted the need to seek other investment opportunities and markets, Balisacan answered, "Yes."
Inilutang ni Trump ang ideya ng pagpapataw ng 60% na taripa sa mga import mula sa Tsina
Trump raised the idea of imposing a 60% tariff on imports from China.
"I hope the US won't do that, because it's not in their long-term interest, to be precise, to isolate the economy, because in the end, it will backfire on them in the form of inefficiencies," Balisacan said.
Higher US tariffs would mean higher prices domestically, which could add pressure to US inflation and reduce the purchasing power of American consumers, according to Balisacan.
To protect itself from external shocks, including rising protectionism, Balisacan stated that the Philippines needs to implement internal reforms to strengthen its economy.
Even before Trump's victory, the Philippines has been actively working to diversify its economic partnerships, according to the country's economic development czar.
"We have become more aggressive in opening other channels, such as our free trade agreements with other countries," Balisacan mentioned, referring to the recent free trade agreement with South Korea.
On November 5, Trump achieved his second consecutive victory after one of the most polarizing elections in U.S. history.
