When American products become costlier, opt for Filipino goods instead

Rising Costs Across American Product Categories: From Basic Food Items like Cereals and Chocolates to Health Supplies such as Supplements and Medication.

, and Administrator

2025 June 15 . 2:25 PM

3 min read

Soaring costs affect various American commodities, ranging from breakfast cereals and candies, to... — Soaring costs affect various American commodities, ranging from breakfast cereals and candies, to dietary supplements and pharmaceutical medicines.

When American products become costlier, opt for Filipino goods instead

Revised Article:

Hey there! Let's chat about the puzzling rise in US product prices in the Philippines, even though tariffs are primarily aimed at Philippine exports, not imports.

Chuck a visit to the grocery store or mall, and you'll see how US brands are getting pricier. From juices and skincare to meds, there's a 10 to 25% hike compared to earlier this year. Inflation may be part of the trouble, but it ain't the whole story.

I started wondering if local traders are using Trump's tariff policies as an excuse to bump up prices. That could be one factor. In early April, Trump, on a day he called "Liberation Day," signed Executive Order 14257, imposing tariffs on imports and exports. A universal 10 percent tariff on all goods entering the US was slapped on, followed by higher country-specific rates.

Negotiations are going on between Philippine and US trade officials about the level of tariffs and the so-called trade imbalance. The Philippines imposes a whopping 34 percent tariff on many US goods entering the country. In return, Trump has listed a 17 or 18 percent tariff on Philippine exports to the US.

But if Trump's tariffs are for our exports, why then would American imports cost more now in the Philippines than earlier this year? And shouldn't the stronger Philippine peso, sitting pretty at P55-P56 to a dollar, make these goods more affordable?

There could be several reasons. US consumer goods are expensive to manufacture, thanks to high wages and other factors. Cebu-based importers end up paying a pretty penny for their goods in the first place. Then there's the increased shipping cost from the US to the Philippines. Add Trump's messy tariff policies to the mix, and it creates uncertainty. Some local businesses are livening up prices in anticipation of what's next.

Some price adjustments may be legit, due to real cost pressures. But others might be an opportunity for some to make a buck, especially with Trump fanning fears of a global trade war and more protectionism.

To keep consumers in the loop, there's a need for more transparency on how imported goods are priced. The Department of Trade and Industry and other government agencies should do a better job of price monitoring. Importers should provide clearer information, and consumers need to be more aware. And don't forget to explore more affordable local or regional alternatives.

As consumers, we should be aware of where our goods come from and what affects their prices. As a country, we need to strengthen local production and reduce our dependence on imported brands. After all, no tariff, Trump's or anyone else's, can hurt us if we're buying Filipino.

Curious about the details? Here's the lowdown: US products becoming pricier in the Philippines is primarily due to factors like currency fluctuations (a weaker or volatile peso), increased global logistics costs, and higher demand from a growing middle class, rather than tariffs being imposed on Philippine exports to the US [1][3]. The recent US tariff actions (like the 10% ad valorem tariff on all US-origin goods) could affect prices, but they're not the main driver for price increases in the Philippines at present [2]. The Philippines’ own tariff reductions on key imports [1] should, in theory, lower prices, but other market and economic factors are overshadowing this policy effect.

Concerns regarding the rise in US product prices in the Philippines are circulating, despite tariffs predominantly targeting Philippine exports, not imports.
In light of Trump's Executive Order 14257 imposing tariffs on imports and exports, locals are questioning whether local traders might be using these tariffs as an excuse to raise their prices in the business sector.
Amidst negotiations between Philippine and US trade officials, it's puzzling why American imports are more expensive in the Philippines now than earlier this year, especially since the Philippine peso has remained strong.
To ensure consumers are not paying excessively for imported goods, it is suggested that the Department of Trade and Industry, along with other government agencies, enhances price monitoring and provides clearer information for importers to promote transparency and prepare consumers for potential price adjustments.