【By Guan察者网, Yuan Jiaqi】
On Wednesday (9th) local time, US President Trump announced a new round of tariff rates targeting eight countries. The so-called "reciprocal tariffs" on products from the Philippines have been raised to 20%, slightly higher than the initial 17% announced on April 2nd, and will take effect from August 1st this year.
In a letter published on the social media platform "Real Social", addressed to Philippine President Ferdinand Marcos Jr., Trump wrote, "Goods that are transshipped to avoid higher tariffs will be subject to even higher tariffs. Please understand, the number 20% is far below the level required to eliminate the trade deficit gap between our country and yours."
According to a report by Nikkei Asia on the 10th, Gregory Poling, director of the Southeast Asia program at the Washington-based think tank "Center for Strategic and International Studies" (CSIS), said it is currently unclear why the tariff rate on the Philippines has been increased.
He speculated, "The most likely reason is that the Trump administration believes that 20% is a reasonable benchmark tax rate based on the framework agreement reached with Vietnam."
Last week, Trump announced a trade agreement with Vietnam, reducing the tariff on Vietnamese goods exported to the US from an initial 46% to 20%, while Vietnam opened its market to the US "completely".
Data from the Office of the United States Trade Representative showed that in 2023, the US trade deficit with the Philippines reached $4.9 billion, an increase of 21.8% compared to the previous year, with imports from the Philippines far exceeding exports. In comparison, the US trade deficit with Vietnam was $123.5 billion.
Nikkei Asia also mentioned that on Monday of this week, Trump also sent tariff letters to Thailand, Cambodia, Indonesia, Malaysia, Laos, and Myanmar. In the latest round of new tariffs, only Vietnam, which had reached a preliminary agreement with Washington, received a tariff rate lower than the one announced in April.
This has caused great dissatisfaction among Henrietta Levin, a senior researcher at CSIS's China studies, who immediately voiced her support for the Philippines.
She angrily told Nikkei Asia, "The Philippines has been negotiating in good faith on trade issues that the US is concerned about. Suddenly changing the conditions now not only casts doubt on the credibility of the negotiation process but also undermines its reputation as a negotiation partner."
Levin served as Director for Southeast Asia and ASEAN Affairs at the White House National Security Council during the end of Trump's first presidential term and in the Biden administration. She claimed that considering the Philippines is a key treaty ally of the US, actions that weaken Manila's trust in the US could have broader strategic implications, which is especially concerning.
Turning the tone, Levin then began to play the "China card". She criticized, "To effectively compete with China in Southeast Asia, the US must prove itself to be a reliable, predictable, and trustworthy long-term partner. Unfortunately, these measures send the opposite signal."
The Philippine president has not yet responded to the US statement. According to a report by Bloomberg on the 10th, Philippine Ambassador to the US Romualdez replied via SMS, stating that the Philippines will conduct further negotiations with the US. He added that the visit schedule of Philippine officials to the US is being arranged.
The Philippine Manila Times also reported that Romualdez replied that Manila "still plans to negotiate to reduce" the 20% tariff. When asked about the possible tariff rate that may be achieved through negotiations, he only said, "We'll see."
As early as May, before the negotiations with the US, the Philippines was planning to increase the purchase of American products to reduce the tariff rate. Philippine Trade Minister Cristina Roque stated at the time that the Philippines planned to increase the import of American soybeans, frozen meats, and other agricultural products, while expanding exports of semiconductors, coconuts, and mango products to the US, seeking to reduce the US tariff to zero.
The report said that Philippine officials initially took a cautious optimistic attitude towards the lower 17% tariff rate, believing that it might help promote the efforts of President Marcos to attract foreign investment. However, the new tariff rate may weaken this optimism.
Philippine President Marcos (left) and Romualdez (right) Social Media
However, the media pointed out that the impact of the tariffs announced by Trump on the Philippines is still much less than that on Brazil.
On July 9th local time, Trump posted a letter addressed to Brunei, Algeria, Moldova, Iraq, the Philippines, Sri Lanka, Libya, and Brazil on social media. The US will impose a 25% tariff on products from Brunei and Moldova, a 30% tariff on products from Algeria, Iraq, Sri Lanka, and Libya, and as high as a 50% tariff on products from Brazil.
When asked about the criteria used to determine the appropriate tariff rates for each trading partner, Trump declared during an event at the White House, "It is based on common sense, trade deficit situations, our situation over many years, and original data."
But the facts clearly show otherwise. Trump's tariff on Brazil is linked to his close friend, former Brazilian President Bolsonaro, who faces trial for attempting to overturn the results of Brazil's 2022 election.
AP pointed out, "This shows that personal grudges, rather than economic considerations alone, are the driving force behind the US leader's tariff policy."
The report said that Brazilian President Lula responded on the same day with a strong statement, saying that Trump's tariff measures would trigger Brazil's "Economic Reciprocity Law."
According to Agência Brasil, the national news agency of Brazil, the law came into effect in April this year, stipulating that when facing unilateral measures that are detrimental to Brazil's international competitiveness, related commercial benefits, investments, and intellectual property rights obligations can be suspended as a response to countries or economic groups that act against Brazil.
In a public post on social media, Lula stated that Brazil will not accept any external control, and will take countermeasures against Trump's unilateral decision to raise tariffs on Brazilian goods exported to the US.
He also pointed out that Trump's claim about the US-Brazil trade deficit is wrong. "US government statistics show that the US has had a trade surplus of about $41 billion in goods and services with Brazil over the past 15 years."
"Brazil is a sovereign country with independent institutions and will not accept any threats or interference from anyone," Lula emphasized.
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Original: https://www.toutiao.com/article/7525332333059342900/
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