PSEi drops on higher US tariffs

MANILA, Philippines — Investors were caught by surprise by the White House’s imposition of higher tariffs on Philippine goods, forcing them to retreat from the market with another round of risks in place.

The benchmark Philippine Stock Exchange index (PSEi) yesterday fell by 0.63 percent or 41.14 points to land at 6,463.2, as investors priced in the impact of higher US tariffs.

The broader All Shares index also declined by 0.14 percent, or 5.16 points, to settle at 3,812.46.

Regina Capital Development Corp. head of sales Luis Limlingan said investors went on a selling spree toward the close of the market on uncertainties in US trade. Apparently, they were shocked that US President Donald Trump jacked up the tariffs on trading ally Philippines to 20 percent.

The rate is higher than the initial 17-percent rate announced in April. Philippine negotiators flew to the US in May to seek the lowering of tariffs.

Special Assistant to the President for Investment and Economic Affairs Frederick Go is traveling to the US again next week to negotiate the duties that would take effect on Aug. 1.

“Philippine shares fell as investors remained on the sidelines on renewed tariff threats, with the markets falling further toward close on Trump’s latest round of imposing new duties on imports,” Limlingan said.

The PSEi saw all industries sink in the red — except for services and mining and oil — as investors traded P9.45 billion worth of shares.

Winners outpacing the losers, 107 to 85, while 55 issues unchanged.

Asian markets mostly rose yesterday on optimism that governments will hammer out deals to avoid the worst of Trump’s tariffs even after he broadened his range of measures.

Negotiators from around the world have tried to reach agreements with Washington since Trump in April unveiled his “Liberation Day” tariff bombshell, with a July 9 deadline recently pushed back to Aug. 1.