00:00In 2020, America, Canada, and Mexico signed a free trade agreement.
00:04In other words, there is no tariff or tax on the products they import to each other.
00:10But US President Donald Trump imposed it.
00:13If you don't make your product in America, you will pay a tariff, and in some cases, a rather large one.
00:2025% tariff will be imposed on products from Canada and Mexico.
00:2520% tariff on products from China.
00:29Canada, Mexico, and China also signed a declaration of additional tariffs on products from America.
00:36In this trade war, the price of goods is expected to rise, not only in their countries,
00:42but also in many other countries around the world,
00:45especially the Philippines, which imports a lot of products from America and Canada.
00:51America has more inputs from China and other countries.
00:59So if they impose a tariff on the products they import from China and convert it into a finished product,
01:09and export it to other countries, the price will be higher, and therefore, it will have an inflationary impact on us.
01:17The Philippines also exports materials such as electronics and agricultural products
01:22that are used in the manufacturing of other countries, such as China.
01:26If their finished products are expensive in America because of the tariff,
01:30the demand for these will decrease, and the raw materials they buy from the Philippines will also decrease.
01:35Our businessmen and workers will be affected.
01:38Embedded in the current nature of our production system, we call it global value chains,
01:44because our production will be connected.
01:48The peso of the trade war may also be affected.
01:51If the goods are expensive in America, the interest rates there may rise to counter inflation.
01:57If that happens, the peso will increase against the dollar.
02:01The dollar is also the payment for the importation of many products that we use in the country.
02:06If the value of the dollar is high against the peso,
02:09the goods we import will also increase in value when it arrives here in the Philippines.
02:16And we import a lot.
02:18But for the Philippine Exporters Confederation,
02:20we can export to America the goods they import to Canada, Mexico and China.
02:25If we don't move, we will not be able to get in if our prices are lower.
02:30That is if the United States does not forgive the tariffs they import to the Philippines.
02:35It is surprising that the United States is already imposing a large tariff on their products.
02:40Its average is at 3.3% compared to the 1.4% tariff of the United States on Philippine products.
02:48For GMA Integrated News, Macky Pulido, for Tutok, 24 Hours.
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