July 14th, 2025
Salceda Research Inc. Chair Joey Sarte Salceda urged President Ferdinand Marcos Jr. to use the newly imposed 20 percent tariff on several key Philippine exports as a strategic opening for a broader, long-term economic deal with the United States. Salceda made the call ahead of President Marcos’s visit to Washington, where trade and investment are expected to form part of the bilateral agenda.
“The increase from 17 percent to 20 percent is not massive, and the Philippines is still in a better position than some regional competitors,” Salceda said. “But in price-sensitive export sectors like garments, electronics, and processed food, even small changes can shift sourcing decisions. This should push us to negotiate with strategy.” Salceda emphasized that the tariff should not be treated as a setback but as a starting point.
“This can be the opening move in a better, more comprehensive deal with the United States — one that includes trade, investment, infrastructure, and supply chain cooperation,” Salceda said.
The United States remains the Philippines’ top single-country export destination, accounting for over 15 percent of total exports. Key goods affected by the tariff include electronics, garments, canned fruits such as pineapple and mango, and seafood products. These industries collectively employ hundreds of thousands of Filipinos and are highly sensitive to market access conditions. “These are the most job-intensive and investment-dependent exports we have. If we lose competitiveness even slightly, we risk losing contracts and long-term buyers,” Salceda warned.
Salceda urged President Marcos to avoid a posture of weakness. “The President will be best equipped to go not just with a complaint and a list of concessions. Concessions, by themselves, are demeaning to the national interest. Trump only understands the language of strength. We should go with leverage, not appeasement,” he said.
Salceda proposed offering continued openness to United States beef imports as a potential bargaining chip.
“We can offer continued openness to United States beef imports, even as we align with European Union standards for EFTA. That gives us room to negotiate. If the US treats our exports well, we can continue to treat theirs well,” Salceda explained. He also called for stronger cooperation in mining and critical minerals.
“We should push for US investment in Philippine mining and mineral processing. In return, we can ask for preferential access for our value-added mineral exports. That is fair. They need stable sources of nickel and copper. We need capital and downstream technology,” Salceda said.
Salceda added that infrastructure investment should be on the table, particularly in areas near United States military bases covered by the Enhanced Defense Cooperation Agreement.
“These areas are not just strategic assets. They are also development zones waiting for investment. Shared infrastructure makes sense for both countries and creates jobs on the ground,” he said. Salceda concluded with a call to elevate the negotiation frame.
“This moment is fraught with threats but rich in opportunities. We should not simply contest the tariff. We should trade it for something bigger,” he said.