Prices of American goods, from cereals and chocolates to supplements and medicine, are rising. The tariffs imposed by the United States government are directed at Philippine exports, not imports. So why are US products becoming more expensive here?
A visit to the grocery or the mall would show how goods from America have become pricier. Familiar American brands of juices, skincare products and some medicines are now 10 to 25 percent more expensive than earlier this year. While inflation may be part of the explanation, it does not tell the whole story.
I began to wonder if local traders are taking advantage of US President Donald Trump’s tariff policies as a reason to raise prices. That could be one factor. In early April, Trump, on a day he called “Liberation Day,” signed Executive Order 14257, imposing tariffs on imports and exports. A universal 10 percent tariff on all goods entering the US was applied, followed by higher country-specific rates.
Negotiations are ongoing between Philippine and US trade officials over the level of tariffs and the so-called trade imbalance. The Philippines imposes a 34 percent tariff on many US goods entering the country. In response, Trump listed a 17 or 18 percent tariff on Philippine exports to the US.
So, if Trump’s tariffs are for our exports, why then would American imports cost more now in the Philippines than earlier this year? And shouldn’t the stronger Philippine peso, now at P55-P56 to a dollar, make these goods more affordable?
There could be several factors. Consumer goods in America are still more expensive to produce because of higher wages and other reasons. Cebu-based importers end up buying costlier goods to begin with. Then there’s the rising cost of shipping from the US to the Philippines. On top of these, Trump’s confusing tariff policies create uncertainty, prompting some local businesses to raise prices in anticipation of what will happen next.
Some local price adjustments may be justified due to real cost pressures. But others may reflect opportunistic pricing, especially with Trump raising fears of a global trade war and more protectionism.
This raises the need for more transparency on how imported goods are priced. Consumers are left to guess what portion of the increase is due to legitimate costs or Trump’s tariffs, and how much is on profit-padding. Crucial would be a stronger price monitoring by the Department of Trade and Industry and other government agencies, clearer information from importers and greater consumer awareness. And for all of us, another reminder to explore more affordable local or regional alternatives.
As consumers, we need to be aware of where our goods come from and what affects their prices. As a country, we need to strengthen local production and reduce our dependence on imported brands. After all, no tariff, Trump’s or anyone else’s, can hurt us if we’re buying Filipino.