THE Philippines faces a growing risk of cheap imported goods flooding the local market as the United States’ higher tariff rates disrupt global trade flows.
Trade Secretary Cristina Roque said the new US tariff policies could push Asian exporters, particularly from China, to divert excess products such as steel, cement and garments to the Philippines.
“We need to protect the manufacturing industry of the Philippines and ensure the protection of jobs,” Roque said at the Federation of Philippine Industries Inc. Business Summit in Makati City.
She said the Department of Trade and Industry (DTI) will coordinate with the Bureau of Customs (BOC) to ensure only registered and properly taxed imports enter the country, while intensifying monitoring against uncertified and unsafe products.
On Tuesday, DTI’s Fair Trade Enforcement Bureau seized P2 million worth of substandard construction materials from 24 retailers in Central Luzon.
In a Sunstar interview, economist Prof. Ronilo Balbieran said the risk of “dumping” — the sale of goods below cost — could escalate as China and other exporters seek new markets blocked by US tariffs.
“They will be selling those Chinese goods at a discount because they were originally destined for the US. That is somehow scary and riskier for our domestic manufacturers,” he said.
Balbieran warned that unchecked dumping could “kill small businesses” competing with imported goods and urged regulators, including the Bangko Sentral ng Pilipinas, DTI and Department of Finance, to tighten monitoring and enforce counter-dumping measures.
While cheaper imports might benefit consumers, he said the influx could widen the trade deficit and weaken local production. Labor-intensive industries such as garments, furniture and jewelry, may be hit hardest, while electronics exports remain insulated under international trade agreements.
Still, Balbieran said the disruption offers a “blessing in disguise” for the Philippines to shift toward value-added manufacturing and digital services, as the peso’s mild depreciation provides a temporary cushion against import shocks. / KOC / PNA