MANILA, Philippines — The Senate has called on the country’s economic managers to prepare contingency measures in response to the 17-percent tariff that US President Donald Trump is imposing on Philippine exports.

Senate President Chiz Escudero said that there is a need for a calibrated approach to cushion the impact of the tariff hike on the local economy.

“What are the pains and what are the gains, if any, that we should expect? Will it be an economic earthquake that will shake our economy to its foundations? Or will it just be a slight tremor that will not cause any harm?” Escudero said in a statement Thursday.

Economic impact assessment

He likewise urged the government to provide immediate clarity on the issue, emphasizing that any response should prioritize national interest without unnecessarily burdening Filipino consumers.

“The baseline of information should be out by sundown today, so we will know, as a nation, on how to move forward,” he said.

Escudero cautioned against a rushed retaliatory response, noting that tariff increases could lead to higher prices. Senators cited soybeans imported from the US, which are used in local poultry and hog feed production, as an example of a commodity that could be affected.

“Ibig sabihin nito ay tataas at magmamahal din ang bilihin because $1 in every $6 of the country’s export earnings comes from our trade with the US,” he said.

In 2024, the Philippines exported $14.2 billion worth of goods to the US while importing $9.3 billion, resulting in a trade surplus of $4.9 billion. In February alone, US-bound shipments reached nearly $1 billion, making the US the country’s top trading partner ahead of Japan, Hong Kong, China, and the Netherlands.

Confidence in economic managers

Despite concerns, he expressed confidence in the government’s ability to handle the situation.

“I am sure our economic managers have considered this possibility and will act accordingly with dispatch. They have my full trust and confidence on how to minimize the pain and maximize the gain,” Escudero  said.

He added that while the 17-percent tariff hike presents challenges, it also offers opportunities for the country to adapt and thrive in the evolving global trade landscape.

“Any upheaval carries opportunities, and I know that we will be able to spot it, seize it, and skillfully navigate the new economic terrain and exploit it for our gain,” he said.