Overseas news
Global markets and the euro gained on Monday as US President Donald Trump postponed his proposed 50% tariff on European Union goods until July. The move offered a temporary reprieve and boosted investor confidence.
Tariff decisions tend to affect investor outlook since higher tariffs can increase the costs of goods and services for both consumers and businesses.
In China, there was a decline in the stocks of Apple’s suppliers on Monday. This was due to President Trump’s threat of a 25% tariff on imported iPhones.
The statement reignited trade tensions and affected major Chinese manufacturers like Luxshare, Lens Tech, and Goertek.
Local developments
President Ferdinand R. Marcos Jr. welcomed the ASEAN bloc’s unified decision to avoid retaliatory measures against US tariffs. He emphasized that a rules-based approach strengthens regional economic stability amid global trade uncertainties.
The Trump administration previously set a tariff of 17% on Philippine-made goods as part of its reciprocal tariff policy. The measure is paused until July 31.
Meanwhile, the Department of Agriculture (DA) plans to recommend a gradual increase in tariffs on rice imports after the next harvest.
The DA seeks to maintain the current 15% rate until the end of the 2nd quarter to stabilize prices. Price increases in food staples such as rice can contribute to higher inflation.
Additionally, government agencies used up 92% of their cash allocations in April, amounting to P1.49 trillion. This was reported by the Department of Budget and Management (DBM).
The latest utilization rate is slightly lower versus the same period last year. This figure could hint at the efficiency of government agencies in using their allocated cash to fund programs and projects.
While US tariff moves continue to cause volatility in the global markets, there’s little indication of their effect in the long term. It might be wise to avoid big changes to your portfolio for now.
