BACOLOD CITY — Stakeholders of the country's sugar industry expressed concern over the recent announcement of US President Donald Trump that he will be imposing a 17 percent reciprocal tariff on imported goods from the Philippines.

Negros Occidental Rep. Emilio Bernardino Yulo said that the steep tariff will have a drastic effect on the sugar industry.

Yulo said that the Philippines has been exporting raw sugar to the US with zero tariff but with the imposition of the 17 percent tariff, "it will no longer be profitable to the exporters."

"The US tariff, however, will have no direct effect on the local market," he said.

Manuel Lamata, president of United Sugar Producers Federation of the Philippines (Unifed), agreed with Yulo, who used to be a representative of sugar planters to the Sugar Regulatory Administration board.

Lamata said 17 percent is too much for Filipino exporters.

"If it is no longer profitable to export raw sugar to the United States. They will sell their sugar to the world market," Lamata said.

Lamata said the Philippines is scheduled to ship out 30,000 metric tons of raw sugar to the US next month.

Administrator Pablo Luis Azcona of the Sugar Regulatory Administration said that the Philippines received a raw sugar allocation of 145,235 MT under the US tariff rate quota (TRQ) system that allows entry of commodities at a lower tariff rate.

The Philippines is shipping out the first half of the allocation in May and the second half in June, he said.

"It is an import tariff that is being imposed so it is not certain if the new tariff will be shouldered by the US importers or it will be passed on to the Philippine exporters," Azcona said.

Earlier, Presidential Communications Undersecretary Claire Castro described as "very minimal" the potential impact of President Donald Trump's tariffs on Philippine products.

"We believe in the good relationship of the US-Philippines alliance so the imposition of the 17 percent was probably a result of a study of the US government so we are accepting it and whatever will be its impact, we have to respond to it appropriately," Castro said.

The director general of the Philippine Economic Zone Authority (PEZA), Tereso Panga, meanwhile, said the country's free trade agreements (FTAs) and other preferential trade schemes are expected to mitigate the impact of the Trump tariffs.

Panga said in a statement Friday that the country's participation in the Regional Comprehensive Economic Partnership (RCEP), Association of Southeast Asian Nations (Asean), and the impending renewal of the European Union Generalized Scheme of Preferences Plus (EU GSP+) will help exporters to navigate the possible impact of the 17-percent reciprocal tariff on Philippine goods entering the United States.

Aside from RCEP and Asean, the Philippines has FTAs with Japan, South Korea, and European Free Trade Association countries such as Iceland, Liechtenstein, Norway and Switzerland.

The country is also a beneficiary of the United Kingdom's Developing Countries Trading Scheme, which is like the EU GSP+ that provides zero tariff on a number of goods entering the UK market.

Panga acknowledged that Trump's order for reciprocal tariffs worldwide presents challenges to its locators, particularly manufacturers of electronics and semiconductors and those in the information technology and business process management (ITBPM), with export shares in PEZA at 44.5 percent and 28.5 percent, respectively.

These sectors' top export market is also the US.

While the 17 percent tariff will make PEZA-made exports to the US more expensive for the American market, Panga said the investment promotion agency remains committed to support its locators.

He added that the administration continues to implement measures that will enhance the Philippines' competitiveness as a hub for smart and sustainable manufacturing and services.

China hits back

Equities and oil prices extended a global rout for markets Friday after China hit back over Trump's tariff blitz with its own mammoth levy on US goods, inflaming international trade war fears.

The Chinese government said Friday it would impose an additional 34 percent tariffs on all imports of US goods, making it the first major nation to unveil retaliatory measures.

Despite the market turmoil, Trump insisted that "my policies will never change" and urged the US Federal Reserve to cut interest rates.

Meanwhile, Wall Street stocks endured another bruising round of selling, with the S&P 500 sinking 6 percent and the Nasdaq falling into a bear market, defined as a 20 percent drop from a recent high.

"We've essentially got an escalating trade war," said Jack Ablin of Cresset Capital. "We're at the beginning of a global slowdown if these tariffs remain in place."

The losses increased somewhat following remarks from Federal Reserve Chairman Jerome Powell on Friday, who warned of the risk of higher unemployment and higher inflation due to tariff increases he characterized as "significantly larger than expected."

Wall Street investors shrugged off data showing the US economy added 228,000 jobs last month, much higher than analysts expected.

"Sentiment is so fragile right now," Chris Beauchamp, chief market analyst at online trading platform IG, said. "Investors are firmly in the 'get me to cash now' phase, on fears that other nations will follow China's lead and, of course, that the US president will respond to China's tariffs with even more charges."

"This trade war is like nothing we've seen for years, perhaps decades," he added.

European markets ended the day sharply lower, with Frankfurt and London sinking nearly 5 percent.

The dollar rebounded against the euro and pound, having fallen sharply Thursday on fears of a recession in the United States.

But oil futures plummeted around 7 percent, having already plunged some 6 to 7 percent Thursday on the prospect of weaker demand.

News that OPEC+ had unexpectedly hiked crude supply more than planned added to the heavy selling.

The price of copper — a vital component for energy storage, electric vehicles, solar panels and wind turbines — also fell sharply.

Beijing on Friday also imposed export controls on seven rare earth elements, its commerce ministry said, including gadolinium — commonly used in MRIs — and yttrium, used in consumer electronics.

"Another jolt of fear has shot through markets as China's threat of retaliation has materialized," said Susannah Streeter, head of money and markets at Hargreaves Lansdown.

"The big concern is that this is a sign of a sharp escalation of the tariff war, which will have major implications for the global economy," she said.