BY his 90-day proscription period, and beyond, the world will be in a quandary, mulling over Trump's next moves over the suspension of his reciprocal tariffs. Knowing that this arrogant bully by now has revealed to the world that he really doesn't have any notion as to the ramifications of his decisions, he will continue spinning this face-saving disarray as a masterstroke. Since no remaining adults in the White House can impose a semblance of order, he must rely solely on the feedback mechanisms of the unthinking "baskets of deplorables." Even the likes of subaltern Elon Musk and his ilk and those within MAGA who have had a recent reversal of fortunes, will inch themselves out of this nightmarish state of affairs that will ensue if this wave of disenchantment and protests, particularly from the "red" states, snowballs throughout America.
As gleaned from Trump's humiliating surrender, forced to exclude from his China tariff smartphones, computers, laptops and other electronic devices, semiconductors, solar cells, and memory cards, etc., chances are he will unilaterally proclaim the rest of the suspended reciprocal tariffs no longer operable. declaring a victory; that he has succeeded in getting everyone to the negotiating table — including his nemesis, China. Each economy will find itself treading its own path — the big ones with a combined nominal GDP of $77.56 trillion, Germany, Japan, India, UK, France, Italy, Canada, Brazil, aside from the US and China will be dominating the narrative for the foreseeable future. I am more concerned with my country and how it will wade through this morass.
Economy and trade profile
The Philippines ranks 38th among 199 world economies with a GDP of $507.67 billion. In 2024, total trade was $200.6 billion, broken into $73.2 billion exports and $127.4 billion imports with deficits of $54.2 billion. We run a deficit with China and a surplus with America. The bulk of our exports are electronics, woodcraft and furniture and some manufactured goods, chiefly to the US and Japan ($12.12 billion and $10.33 billion, respectively).
Our imports are petroleum, oils and coal and integrated circuits which we then assemble and re-export as various categories of electronic products; shipped largely from China totaling 25.7 percent of total import value amounting to $32.83 billion. We run a deficit of $4.14 billion.
What we have, others may not
With American firms abandoning China, perhaps we can entice some of these manufacturing companies to relocate to the Philippines highlighting our comparative advantage. Aside from being one of the oldest trading partners of America, having been America's first colony, ever, we can play the "brown brother" card. We are the only Christian country in these parts. And we love Hollywood more than Bollywood.
At the turn of the century, the "Thomasites," 600 American teachers, traveled from the US to the newly occupied territory to establish the public education system patterned after America. They came aboard the US Army transport ship USS Thomas, thus the name. They planted the seeds for what would eventually become a large pool of bilingual English-speaking, educated and skilled workers.
Outsourcing services
This gave rise to the BPO industry — the business process outsourcing that has been providing services such as customer and technical support, and back-office operations to companies around the world, especially in the US — where our labor is much more competitive.
BPO has grown exponentially not only due to our skilled bilingual hardworking young workers but by the quirks of the 12-hour time difference. The 9 to 5 daytime working hours in America are serviced by our 9 to 5 night shift workers.
PH eyes deeper military ties with Taiwan
Not to mention the large pool of OFW experienced in working abroad who, due to the looming Trump-induced global economic turbulence, may be moving back home themselves. These are the Filipinos who have been the backbone of health care, workers in the information technology sectors, manufacturing and construction who may be attractive to foreign firms relocating to the country.
Geography and tourism
The Philippines is strategically located in Southeast Asia serving as a gateway to other markets in the region — with close proximity to China, Malaysia, Singapore, Japan, Korea, and Indonesia — powerhouse economies. And with its tropical climate — we only have dry and wet seasons — no winter frosts, allowing an abundance of all-year-round exotic fruits and agricultural products in demand in the international market. The country as an archipelago also boasts of the fifth longest coastline in the world measuring 36,289 kilometers (22,549 miles) where surrounding seas are abundant with seafood.
Our tourism sector has world-class destinations with amenities from the world-famous Boracay to El Nido to Gintubay to secluded beach hideaways and diving spots in the coastal provinces; to mountain areas with cooler climes at higher altitudes and rainforests with diverse fauna/flora — accessible to local metropolises where inexpensive shopping and local and international restaurants cater to all types of cuisine.
Manufacturing — emerging market
The Philippines has a growing manufacturing sector, particularly in electronics and semiconductors. It is a key player in the global supply chain for electronic components, which permeate many industries, including technology, automotive and non-robotic assembly lines. We have long established bilateral and multilateral trade agreements that enhance our trade relations with other countries, including the US itself. The Generalized System of Preferences (GSP) allows certain Philippine products to enter the US market duty-free, promoting exports — unless Trump insists on extracting his pound of flesh on our imports. Coming from a still low base of development, the country presents opportunities for investment and a wide space for growth — making it an attractive destination for foreign direct investments (FDI) in many of the economic sectors. These comparative advantages position the Philippines favorably in international trade, particularly with the US and other countries in the region.
The flip side
Although we have managed to emerge as an economic tiger cub in the region and we have long shed our image as the "sick man in Asia," our system of governance has time and again reinforced those defective structures and pulled us back to where we were. We have long established that our systemic defects in governance — rent-seeking bureaucrats, corrupt elected officials, traditional politics, political dynasties and the complicit oligarchy — are the root causes why the country can't move forward as fast as we want to despite the comparative advantages described above.
We have long identified that our 1987 Constitution — written as a knee-jerk derivative of decades of the totalitarian martial law regime — is the instrument that has encased and institutionalized these systemic deficiencies. For one, some provisions prevent foreign direct investments (FDI) from pouring into the country — the lifeblood of economic growth.
We, the progressives, have always clamored for the revision of the 1987 FDI-averse Constitution. And the conservatives and the guardians of the status quo entrenched in the power structure of the country, shielded by the Constitution, have always managed to stymie the needed systemic reforms that could propel our country forward. We have a very slim chance this midterm elections can put in place the seeds of possible reforms.
We have some senatorial candidates who may fit the mold of the constitutional reformists that may need our votes.