26/07/2026
Just recently, US president Donald Trump slapped the Philippines with 12.5% tariffs on goods following the expiration of the 10% tariffs last July 24.
The 12.5% tariffs placed on Philippine goods is higher than the 10% tariffs placed on other countries such as Argentina, Bangladesh, Cambodia, Canada, Ecuador, El Salvador, Guatemala, Honduras, India, Indonesia, Jordan, Malaysia, Mexico, Pakistan, Sri Lanka, Trinidad and Tobago, and the United Kingdom.
✅ How will this affect the Philippine economy?
Generally, this is seen as something negative.
First, the Philippine peso will weaken. The tariffs further increased the odds of the Philippine peso weakening. The Philippine peso is already struggling given the possibility of rising inflation (due to higher crude oil prices) and low confidence in the Philippine government.
Second, demand for Philippine goods may weaken because the cost of acquiring these goods will increase. On the positive note though, the Philippines may slightly benefit if there are other countries with higher tariffs.
✅ How will this affect businesses and investments?
If you're into business or investments (especially in the financial markets), expect some slowdown.
For businesses, the economic slowdown will definitely have some negative effects. For one, because the value of the Philippine peso will drop, the purchasing power of the people will also drop.
For investors or traders, expect some weakness in the stock market. A weak Philippine peso is generally negative for companies. Their revenues and income will likely decrease.
✅ What to do given the current situation/development?
Short term, do not buy nor invest yet. Things are seen to be weak.
Instead, focus on getting and increasing your liquidity. You need liquidity in times such as this so that when prices drop, you can get substantial volume at lower prices. The odds are quite high that prices will drop.
There will be a lot of opportunities soon when prices will drop.
Bear in mind that the tariffs aren't the only one affecting the Philippines right now. It is just one of the several ones. Thus, the odds of prices dropping soon are quite significant.
On the positive note, bad times do not last. In fact, it is just part of the cycle. Sooner or later, things will get better. What you want is to have substantial or at least ample liquidity when that happens. You need volume to generate good returns.
Summing it up, focus on getting liquidity now and less on buying or investing. In fact, it is best to avoid buying for the time being.
Timing is very essential now. If you get the timing right, you can earn very good returns. For now, this is definitely not yet the right time to buy.
However, just monitor things closely. There is always the possibility of things changing instantly.
