Labor advocate Wennie Sancho expressed his apprehension on the consequences of the 17 percent tariff imposed by US President Trump on sugar exported to the United States. One of these is reduced competitiveness.
The increased cost due to tariffs could make sugar exports less competitive in the American market leading to decreased sales and revenue for sugar exporters, he said.
Another is the potential loss of market share. Sugar exporters might lose market to other countries with more favorable trade agreements or lower tariffs, potentially harming their economy, Sancho, secretary general of General Alliance of Workers Association (GAWA), said in a statement.
Sugar experts should study Sugar Export Data. The volume and value of sugar exports from the Philippines to the U.S.A. and their significance to the Philippine economy, he said.
Sancho said the tariffs may likely result in higher prices for American consumers, as companies may pass on the additional cost to their consumers. This could lead to reduced demand and slower economic growth.
The tariff may create uncertainty for businesses and investors, leading to reduced investment and consumption, he speculated.
Companies may seek alternative suppliers or markets potentially leading to trade diversions and changes in global trade patterns, Sancho added.
The Philippines might need to reassess its sugar export industry strategy to mitigate potential losses and capitalize on new opportunities for the good of the sugar industry and its stakeholders considering the unpredictable policy of the Trump administration on tariff allocation for exported sugar from the Philippines, he added.*
