BUDGET Secretary Amenah F. Pangandaman said the Department of Trade and Industry (DTI) is sufficiently funded to support exporters affected by US tariffs.
In an e-mail interview with BusinessWorld, Ms. Pangandaman said the DTI’s budget this year can extend support should the tariffs result in a “reduction in profit margins for exporters.”
“In this regard, under the FY 2025 General Appropriations Act (GAA), the DTI was provided with P902.30 million for its Exports and Investments Development Program for the development, facilitation and promotion of exports and investments, as well as the formulation of strategic plans and policies thereon,” she said.
The Philippines has been assigned a 17% tariff by the US, which have been placed on hold pending negotiations on more definitive tariffs in Washington. Representing the Philippines are Special Assistant to the President for Investment and Economic Affairs Frederick D. Go and Trade Secretary Cristina A. Roque.
The US is charging most trading partners a 10% baseline tariff after suspending the reciprocal tariffs announced in early April.
Top Philippine exports to the US are electronic products, ignition wiring sets, other wiring assemblies used in vehicles, aircraft and ships, coconut oil, machinery and transport equipment, pineapple and pineapple products.
Ms. Pangandaman also cited the budgetary provisions for the DTI’s Micro, Small, and Medium Enterprises (MSMEs) Development Program, which aims to enhance the growth and global competitiveness of MSMEs.
“This program includes projects such as the establishment of Negosyo Centers (P454.3 million) and the Shared Service Facilities (SSF) Project (P646.7 million),” she said.
The Negosyo Centers will provide business registration assistance, business advisory services, business information, and advocacy services, including product development, trade promotion, and financing facilitation assistance to MSMEs.
Other allocations include the P500-million Pondo sa Pagbabago at Pag-asenso (P3) Program.
The DTI said this program will set up common service facilities and assist small enterprises in improving their productivity and efficiency.
It will provide eligible small enterprises with shared machinery, equipment, tools, accessories, and other items.
John Paolo R. Rivera, senior research fellow at the Philippine Institute for Development Studies, said the government can also provide tax incentives, soft loans, or production subsidies for exporters of vulnerable products such as electronics components, automotive parts, and agriculture-based goods.
“It would be prudent for National Government to earmark a specific allocation in the 2026 budget to support sectors affected by the US tariffs,” he told BusinessWorld via Viber.
Mr. Rivera added that a “dedicated budget line possibly under the DTI, Department of Agriculture, or a special inter-agency fund” would demonstrate the government’s dedication to safeguarding jobs and competitiveness. — Aubrey Rose A. Inosante