Bracing for the Ripple: How the Philippines Can Navigate Trump's New Tariffs
- Brew Baritugo
- Apr 9
- 3 min read
On April 9, 2025, U.S. President Donald Trump implemented new tariffs on imports from over 90 countries, including the Philippines. For most, this includes a 10 percent baseline tariff, while China faces a 104 percent total tariff. The U.S. justified these measures as part of efforts to protect local industries and reduce trade deficits. Global markets reacted quickly. The S&P 500 fell by over 10 percent in two days. China responded by weakening its currency. The peso also showed signs of pressure.
Although the Philippines was not singled out for higher penalties, the effect of these tariffs could still ripple through our economy, especially in key sectors like BPO, manufacturing, retail, and even startups.
How the Job Market Might Be Affected
The BPO industry employs more than 1.5 million Filipinos. Manufacturing covers more than 1.2 million workers. Retail employs millions more, mostly through micro, small, and medium enterprises. Startups in fintech, logistics, and e-commerce also contribute thousands of jobs and play a key role in innovation.
If U.S. companies experience rising operational costs, they might tighten spending, which could impact contracts with BPOs. Manufacturing may also feel the pinch, especially companies tied to supply chains involving the U.S. or China. Retailers dependent on imported goods might face higher costs, leading to smaller margins or increased prices.
Startups, especially those with international investors or suppliers, may also face slower funding rounds, higher input costs, or delays in cross-border transactions.
Where the Opportunities Are
Despite the risks, this situation can also push us to rethink our strategies. BPOs have a chance to strengthen their role beyond customer service by offering analytics, automation, and AI-driven support. Clients will need partners who can do more with less—and this is where the Philippines can shine.
Manufacturing can also benefit from companies moving out of China and looking for alternative locations. The Philippines, with its large workforce and improving infrastructure, can attract these companies if we act fast and stay competitive.
Retailers can double down on local sourcing. By investing in local suppliers and manufacturers, they can reduce dependency on imports and keep prices stable. Supporting local brands can also appeal to Filipino consumers who are becoming more value-conscious.
For startups, the key is agility. Now is the time to focus on solving local problems, growing user bases, and building strong partnerships. Founders should also explore funding from regional investors and government-backed innovation grants. There’s still capital available, especially for startups that can show they are resilient, frugal, and focused on solving real issues.
How We Can Prepare
This is not the first time the Philippines has faced external shocks. We’ve been through currency crises, typhoons, lockdowns, and more. What has kept us moving is our ability to adapt, to learn quickly, and to help each other.
We can brace for this impact by doing the basics well—spending wisely, supporting local businesses, building skills that matter, and staying calm but prepared.
This is also where HR steps in. HR teams are not just support functions—they are strategic partners in helping companies weather uncertainty. HR can lead in three key areas: workforce planning, upskilling, and internal communication.
Workforce planning means helping leaders anticipate where to invest in talent, where to automate, and where to restructure if needed. Upskilling means making sure employees are ready for new roles or tools, especially in AI, data, digital service, and supply chain agility. Internal communication means keeping everyone aligned and calm—by sharing facts, setting clear expectations, and creating safe spaces for feedback and questions.
If you lead a business, it’s time to review your supply chains, talk to your teams, and think ahead. If you’re in HR, your role is more important than ever. Be the voice of reason, the builder of skills, and the connector between strategy and execution.
This storm may shake the world economy, but it also gives the Philippines a chance to prove that we can rise, not just recover. We’ve done it before. We can do it again—together.
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