Billions of pesos worth of orders for Philippine exports are placed on hold due to uncertainty posed by the currently suspended United States’ reciprocal tariffs on its trade partners, the United Port-users Confederation (UPC) of the Philippines Inc. said.
On the sidelines of a forum in Pasay City on Wednesday, UPC President Nelson Mendoza said the risks faced by exporters and importers are high for the next four years under US President Donald Trump’s administration, “unless he changes his mind” about the reciprocal tariffs.
On the value of goods that were put on hold, Mendoza said: “For sure it runs in billions (of pesos) or several millions of dollars.”
“Right now, the major pressing concern is the US tariffs. Right now, exporters are not in a better position as many of their goods are not cancelled but are on hold, “ he stressed.
Those orders are being held because of the 90-day freeze on the tariffs (imposed by President Trump), Mendoza said, adding
that “probably those will be initially moved, but after 90 days, we cannot say for sure what will happen.”
He said orders for 2025 were placed in 2024 at the rates and costs prevailing that year.
“The costs are now different,” Mendoza said.
He added that the impact is also felt on imports, as goods coming from the US will also be costlier.
“Shipping lines say the routes of their vessels will be irregular for the moment,” Mendoza said, but declined to elaborate.
Some traders are likely to use the 90-day pause as a window to move and ship their goods to the US, while tariffs are at a baseline rate of 10 percent until July 8.
When sought for comment, Sergio Ortiz Luis Jr., president of the Philippine Exporters Confederation Inc., said there are no official communications from members, but “it is possible some deals are not being processed into purchase orders” until the tariffs settle down.
Ortiz-Luis said buyers from the US would want to play safe and hold their purchases until the final tariffs are announced.
Meanwhile, in a joint statement released by the Department of Trade and Industry (DTI) on Wednesday, DTI Secretary Cristina Roque and Secretary Frederick Go, Special Assistant to the President of Economic and Investment Affairs, expressed confidence that “through our strong economic and diplomatic ties (with the US), we can find arrangements that are mutually advantageous.”
On Tuesday, the officials held consultations on the US tariffs “ahead of their anticipated face-to-face with US counterparts.”
The DTI did not say when and where the meeting with US trade officials would occur.
The DTI and the Office of the Special Assistant to the President of Economic and Investment Affairs jointly convened the export sectors, including producers, manufacturers, consolidators, industry associations, and government officials. The purpose, the DTI said, was to ensure that views and interests of various sectors are taken into consideration, “as the government works to secure the best possible outcomes for the Philippines in its trade relations with the US.”
