If the “fake news” media is to be believed, the American public is experiencing economic anxiety and uncertainty under the policies imposed by President Donald Trump’s administration — especially how they flip-flop in slapping higher tariffs on specific countries.
The phrase “when the United States sneezes, the world catches a cold” illustrates its global impact and influence. The rest of the world can relax if the U.S. economy remains robust. However, the impending global trade war triggered by Trump’s tariffs had everyone on edge.
If the U.S. economy is doing well, it increases consumer demand for imported goods from other countries, including those from the 10-member Association of Â鶹ÊÓƵeast Asian Nations, such as the Philippines.
The world’s largest economy has considerable influence on global commerce. It is already a trading superpower to other first world countries — what more for developing southeast Asian countries such as the Philippines?
Singapore, the setting of the hit Hollywood film Crazy Rich Asians, is the only first world and highly developed country in southeast Asia, while the rest — like Malaysia, Indonesia, Thailand and Vietnam — join the Philippines as developing countries.
According to the U.K.-based global economic data provider Circular Economy Innovation Communities, the Philippines exported US$1.128 billion in January 2025, up from US$947.8 million in December 2024.
In 2023, the Observatory of Economic Complexity’s data distribution platform showed that the Philippines exported an estimated US$13.3 billion of goods, with US$1.44 billion from office machine products and other electronics, integrated circuits and insulated wires.
Leather footwear and bags, office machine parts, animal and vegetable fats and oils, and even workers in health care — including nurses and skilled labourers — are among the Philippines’ other exports to the U.S.
While researching this opinion piece, I was surprised to learn that the Philippines exports nuclear reactors and boilers to the U.S. Services exports are in information technology and business process outsourcing, which are U.S.-centred.
The Philippines is part of a large global trade and supply chain and, like most countries, it relies on U.S. economic policies. Despite benefiting from Philippine exports, Trump did not spare the country and imposed 17 per cent tariffs on goods entering the U.S.
Reuters, citing a recent study by the Philippine Institute for Development Studies, reported that the Philippines would be the “least exposed” to the crippling effects of Trump’s economic plan, which includes sweeping tariffs.
In fact, according to the report, the Philippines could benefit from Trump’s long list of countries he believes have taken advantage of the U.S. economy, which he described as having “went to hell” under the leadership of former president Biden.
The Philippines’ economic dependence on the U.S. — both stable and vulnerable — is rooted in a history of nearly five decades of colonial rule and its status as a strategic ally in southeast Asia.
The Philippines’ most significant challenge is positioning itself globally. The government could continue diversifying its export markets by investing in domestic industries and enhancing infrastructure — such as roads and transportation — to attract more investment.
The Philippine economy does not operate in a vacuum. U.S. economic trends and trade policies, especially tariffs, can significantly impact the archipelago, both in the short and long term.
While the U.S. will remain a vital partner, the Philippines must develop a diversified and resilient economic base. Doing so will help mitigate the impact of a global trade war and position the country for more sustainable growth in an increasingly polarized global trade environment.
