Peso up as markets weigh new tariff developments
THE PESO climbed on Thursday after US President Donald J. Trump’s announcement of a 50% tariff on copper weighed on the greenback.
The local unit closed at P56.47 per dollar, rising by 10 centavos from its P56.57 finish on Wednesday, Bankers Association of the Philippines data showed.
The peso opened Thursday’s session stronger at P56.48 against the dollar. Its worst showing was at just P56.495, while its intraday best was at P56.375 versus the greenback.
Dollars traded inched up to $1.389 billion on Thursday from $1.387 billion on Wednesday.
“The dollar-peso closed lower as Trump’s announcement of tariffs on copper pressured the dollar,” a trader said in a phone interview.
Mr. Trump announced on Wednesday a new 50% tariff on copper to start on Aug. 1 in a bid to promote domestic development of an industry critical to defense, electronics and automobiles, Reuters reported.
The move marks the latest in a string of sectoral tariffs Mr. Trump has placed on industries such as steel and aluminum that economists warn will drive up costs for American consumers.
The White House ordered a Section 232 investigation into copper imports in February, using a law that gives the president authority to impose higher tariffs based on national security grounds.
Mr. Trump said on Wednesday that he received a “robust” national security assessment that concluded tariffs were necessary to protect US production of a commodity that is critical across an array of industries.
The US depends on imports for nearly half of its refined copper needs, and brought in 810,000 metric tons in 2024, according to the US Geological Survey.
Countries set to be most affected by the tariff are Chile, Canada and Mexico, which were the top suppliers to the US of refined copper, copper alloys and copper products in 2024, according to US Census Bureau data.
The market also took in stride Mr. Trump’s announcement of a 20% tariff rate on the Philippines’ exports to the US as this was still relatively lower compared to those for other countries, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.
Mr. Trump on Wednesday issued Aug. 1 tariff notices to several trading partners including the Philippines, which he slapped with a 20% duty, higher than the previously announced 17%, Reuters reported.
Still, this was lower than the levies for Japan, South Korea, and Malaysia (25%), China (30%), Indonesia (32%), Bangladesh (35%), Thailand and Cambodia (36% each), and Laos and Myanmar (40%).
For Friday, the trader expects the peso to move between P56.30 and P56.80 per dollar, while Mr. Ricafort said it could range from P56.35 to P56.60. — A.M.C. Sy with Reuters
