Fil-Am Business Leaders Wary on Trump's Higher Import Tariffs: Higher Prices, Job Loss Seen

LOS ANGELES-The Filipino-American community are wary that US President Donald Trump’s decision to impose higher tariffs on all imports to America will push prices up, affect small businesses and might result to job loss.

“I express my concerns regarding the tariffs imposed on Philippine exports, as these measures are poised to significantly impact our export sector and disrupt supply chains, particularly given the already narrow profit margins faced by many businesses,” Jocip Samiento, Filipino-American Chamber of Commerce of Greater Los Angeles (FACCGLA) president, told the TFCN.

Photo By: Dan Halden

While exporters may be compelled to either absorb these additional costs or transfer them to consumers, resulting in higher prices, Sarmiento remains optimistic in the resilience of the country’s businesses. “I am confident that they will navigate and adapt to these challenges effectively,” he added.

The baseline 10% tariff will go into effect on Saturday, April 5, and any higher tariffs will go into effect on April 9 this year.

President Trump said the United States will see fair trade in imposing an individualized reciprocal higher tariff on the countries with which the US has the largest trade deficits . These tariffs are aimed at leveling the playing field for American workers and businesses.

Having lived in the US for more than three decades, Marge Ordiales-Martinez CEO of CSI Professionals Inc., is concerned about the adverse impact of the tariff increase on US-Philippines diplomatic relations.

“As I reflect on the US government's decision to impose a tariff increase on Philippine businesses entering the US, I'm concerned about the far-reaching consequences for various stakeholders. The tariff increase may strain diplomatic relations between the two countries. This could also impact cooperation on other key issues, such as security and trade,” Martinez, who owned and founded one of the oldest and biggest immigration and employment companies in Southern California, told TFCN.

“While the US may benefit from patronizing its own products, it's crucial to acknowledge the importance of international trade partnerships. The US needs exporters from countries like the Philippines to bring in raw materials that benefit US manufacturers and businesses, ultimately allowing consumers to confidently spend more,” Martinez added

Photo By: Dan Halden

Martinez also sees the need for an open dialogue among the stakeholders to mitigate potential negative consequences.

“The US and the Philippines should consider renegotiating trade agreements to find mutually beneficial solutions. Additionally, Philippine exporters may need to diversify their markets to reduce dependence on the US market. By working together, we can navigate these challenges and build a stronger, more resilient trade relationship between our two countries,” Martinez pointed out.

In a Facebook Page of SoCal Pinoys for Filipinos in Souther California, businessman J.R. Ortiz commented that “I’d rather pay a little more on the few things I buy imported, it it means no more income tax, property tax and bigger Social Security checks for everyone.”

Describing the move of President Trump as “TARIFFying Day!”, financial strategist Jonathan Ravelas, in an interview with TFCN, affirmed the negative impact of the higher tariffs to the lives of Filipino-American.

“Fil-am’s could feel the brunt of higher prices. Also risk of job loss,” Ravelas said, noting that the anticipated consequences of the tariff hike may include: “retaliation from trade partners, currency volatility, and depreciations are expected, which will help estimate economic deadweight losses.”

Photo By: Dan Halden