THE GOVERNMENT has not received any formal communication from the US regarding potential new tariffs targeting countries with digital tax regimes, Department of Finance (DoF) Secretary Ralph G. Recto said.
“There have been no communications to us,” Mr. Recto told reporters on the sidelines of a Senate briefing on Tuesday.
US President Donald J. Trump, posting on Truth Social last month, warned of “substantial additional tariffs” on nations that impose digital taxes.
Asked whether he is weighing the possibility of tariff retaliation, Mr. Recto said, “I don’t give it much importance as of now.”
The Philippines began implementing a digital tax law, Republic Act No. 12023, this year. It imposes a 12% value-added tax on nonresident digital service providers such as Netflix, Amazon, and Google.
The measure aims to create a level playing field among platforms, regardless of nationality.
On Aug. 29, Trade Undersecretary Allan B. Gepty said the Philippines is asking the US to exempt agricultural and other exports from the 19% reciprocal tariff.
Mr. Recto reiterated that no final agreements have been signed, as negotiations between the two countries remain ongoing.
President Ferdinand R. Marcos, Jr. met with Mr. Trump in Washington in July. After the meeting, the US raised its reciprocal tariff for the Philippines to 19% from the original rate of 17% announced in early April. The 19% tariff took effect on Aug. 7.
The Philippines had agreed in negotiations to admit certain US products tariff-free, including automobiles, wheat, soy, and pharmaceuticals. The tariff exemption is expected to result in between P3 billion and P6 billion in foregone revenue for the government.
Mr. Recto remains optimistic following double-digit export growth in July, but added it may not be sustainable because exporters likely rushed to get their shipments in before the new tariff took effect.
Exports grew 17.3% to $7.34 billion, while imports slowed 2.3% to $11.38 billion in July, according to the Philippine Statistics Authority.
“Siguro sustainable ’yun kung hindi rin papatawan. Puro pananakot. So frontloading hanggang kailan? Next year. Sana. (Export growth could be sustainable if the higher tariff is not imposed. How long will the frontloading last? Until next year, I hope),” Mr. Recto said.
Mr. Trump also floated a proposal to raise tariffs on semiconductors to as high as 300%, to encourage US companies to manufacture chips domestically. — Aubrey Rose A. Inosante