Overseas news
The US and China came to a trade truce on Wednesday. This means the US will place a 55% tariff on Chinese goods and China will impose a 10% tariff on US goods. There is also a provision for China to supply the US with rare earth minerals.
China is a significant trading partner of the US due to its manufacturing capabilities. Substantial changes to the tariffs on products from the former have the potential to rock markets in both and other countries as well.
Meanwhile, US household wealth fell in Q1 2025 as the net worth of households and non-profits dropped to $169.3. trillion from the previous quarter’s $170.9 trillion. This was the first quarter-on-quarter drop since 2023.
Total household net worth is a measure of the value of assets minus the sum of all outstanding liabilities of households in a country. It can give an idea of the general financial health of households.
Local developments
The 19th Congress of the Philippines failed to ratify the wage hike bill during its last session on Wednesday. This was due to the Senate and the House disagreeing on whether wages should increase by P100 or P200.
While higher salaries are beneficial for workers, the potential effects on businesses are one aspect that is being considered as well.
In addition, Meralco announced that its electricity rates will fall by P0.1076 per kilowatt-hour in June to P12.1552 per kilowatt-hour. This was attributed to lower charges from suppliers and the Wholesale Electricity Spot Market.
Power costs affect consumers and businesses alike, and so are a major concern for the country.
Meanwhile, stock transaction taxes on the Philippine Stock Exchange (PSE) are set to decrease to 0.1% from 0.6%. This is a result of the recently signed Capital Markets Efficiency Act (CMEPA) which will take effect on July 1.
It is hoped that this change will enhance market liquidity and regional competitiveness.
Aside from the stock transaction tax, CMEPA reduces the documentary stamp tax (DST) on the original share issuance to 0.75% from 1% of the shares’ par value. It also simplifies and standardizes taxes on interest income and royalties, among other improvements.
These developments aren’t pointing strongly in a particular direction, although there are some positive signals for the future. You may be better off avoiding big decisions for the moment.
