PHL urged to broker US-ASEAN talks

By Chloe Mari A. Hufana, Reporter

THE PHILIPPINES should leverage its close ties with Washington and act as a broker between the US and Association of Southeast Asian Nations (ASEAN) as the bloc tries to negotiate for lower reciprocal tariffs under President Donald J. Trump, analysts said.

“Manila can undoubtedly serve as a broker or mediator to facilitate a dialogue between ASEAN and Washington in light of the colossal reciprocal tariffs imposed on ASEAN member states,” Josue Raphael J. Cortez, ASEAN Studies lecturer at De La Salle-College of St. Benilde, told BusinessWorld in a Facebook Messenger chat.

“We can leverage our strong bilateral ties with the US to encourage both parties to come into dialogue and discuss how we can collectively navigate these tariffs, which may have nuanced repercussions on our respective economies,” he added.

Mr. Cortez said the Philippines has been active in multilateral diplomacy, having led global discussions on the law of the sea and playing a key role in securing the United Nations’ framework on poverty eradication, which remains in effect through 2027.

Regionally, Manila’s diplomatic credentials date back to its early efforts within ASEAN, including its advocacy during the Cold War to retain Cambodia’s seat in the UN amid the Vietnamese-backed regime during the Khmer Rouge period, he added.

The US imposed steep reciprocal tariffs on several ASEAN member states earlier this month, triggering calls for dialogue.

In ASEAN, Vietnam was slapped the hardest with a 46% reciprocal tariff on its exports to the US, while Singapore had the lowest tariff at 10%. The Philippines was slapped with  a 17% tariff, the second-lowest in the region.

In a meeting last week, ASEAN decided against imposing retaliatory tariffs on the US, opting for diplomatic engagement to address escalating tensions. In a joint statement, ASEAN economic leaders said they would engage in a frank and constructive dialogue with the US.

The 10-member bloc, collectively the world’s fifth largest economy, relies heavily on exports as a growth driver.

It emphasized the importance of open communication and collaboration to ensure a balanced and sustainable relationship with the US.

Hours after the reciprocal tariffs took effect on April 9, Mr. Trump imposed a 90-day freeze in all countries except China.

After this, American Treasury Secretary Scott Bessent said more than 75 countries contacted the US Trade Representative (USTR) to negotiate new tariffs.

Mr. Cortez noted that tariffs are among the tools of modern diplomacy, replacing military power to compel other countries to adhere to something.

“Over-imposition of tariffs may also be a double-edged sword on the part of those imposing it,” he said, citing countries that opt for retaliatory tariffs.

Frederick D. Go, special assistant to the President for investment and economic affairs, last week said the Philippines had reached out to the USTR to negotiate for lower tariffs. He said he would go to Washington for a dialogue.

He also said the Philippines is aiming for a free trade agreement with the US.

The Philippine government kept a cool tone on Mr. Trump’s tariffs, calling the move an opportunity. Mr. Go earlier said the country is in a “semi-good place” since it is one of the lowest-hit countries.

The 17% tariff would only affect 0.1% of the country’s economic output, Mr. Go said, citing the National Economic and Development Authority.

But Filomeno S. Sta. Ana III, co-founder and coordinator at Action for Economic Reforms, said the reciprocal tariffs could also have second-hand effects.

“Unless those steep tariffs are reversed, expect a significant slowdown in the global economy,” he told BusinessWorld in a Viber chat. “A global trade war, particularly a clash between giants, is a real war but using different weapons. In this scenario, everyone suffers badly.”

He also said geopolitical conflicts could hit the Philippines given its close alliance with the US.

Under Mr. Trump’s second term, the US escalated its use of tariffs as a central component of trade policy, marking a shift toward protectionism.

Apart from the reciprocal tariffs, he enforced a 10% baseline tariff on almost all imported goods.

Notably, Chinese imports face 145% tariff, intensifying the trade war between the world’s two biggest economies.