Overseas news
US President Donald Trump announced a 50% tariff on Brazilian goods, a significant increase from the initial 10% tariff announced in April. This happened despite the US exporting more to Brazil than it imports from the country.
The series of new US tariff announcements may cause uncertainty since higher tariffs can make goods and services more expensive.
Changes in tariffs can also shape global trade, which may affect the profitability of businesses and industries.
Local developments
The Philippine government is set to fly out a delegation to Washington, DC, to renegotiate and seek adjustments on US tariffs.
This follows President Trump’s announcement of a 20% tariff on Philippine goods, higher than the previously announced 17% rate. The new tariffs are scheduled to take effect August 1.
Relatedly, the Philippine Stock Exchange index (PSEi) dropped on Thursday to the 6,400 level due to higher US tariffs on Philippine goods.
The steep tariff likely caused concern due to its potential impact on the local economy given that the US is the Philippines’ top export market.
Meanwhile, analysts said global uncertainty and growth forecasts weigh on the Philippines’ ability to keep debt-to-gross domestic product (GDP) ratio under the internationally-accepted 60% benchmark. They called for more strategic spending to speed up productivity and stay ahead of debt.
The debt-to-GDP ratio compares how much a country owes (debt) to how much it produces in a given period (GDP). It is seen as an indicator of that country’s ability to pay its debt.
The latest tariff announcements have affected investor outlook, but it’s not yet clear what will happen next. For now, you may want to be cautious with your investing decisions and stay updated on developments.
