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Philippine Air Force jet goes missing during ‘tactical operation’ in south

PHOTO SHOWS the exact fighter jet during an exercise last year. — PHILIPPINE STAR/WALTER BOLLOZOS

By Kenneth Christiane L. Basilio, Reporter

A PHILIPPINE Air Force fighter jet went missing during a “tactical night operation” in a southern Philippine province at midnight on Tuesday, a military official said, as search efforts were under way.

The FA-50 jet’s two-man crew lost contact with other aircraft involved in the military operation minutes before reaching the target area, where it was expected to provide air support for ground troops, air force spokesperson Ma. Consuelo N. Castillo told a news briefing.

She did not divulge any more details about the incident, citing security concerns.

The military had begun its search operations for the missing fighter jet, which lost contact over land. Its pilots were wearing locator beacons, but she did not disclose if they were emitting signals.

“This is the first major incident involving our fighter aircraft,” Ms. Consuelo said.

The Philippines bought 12 Korean-made FA-50 light fighter jets for a total of P18.9 billion in 2014, with deliveries starting the following year, as part of efforts to modernize its aging military arsenal. The jets are the Southeast Asian nation’s most advanced fighter aircraft in its inventory.

Manila is contemplating getting a dozen more as it seeks to finalize the deal’s term of reference, according to previous news reports.

There are no orders yet to ground the remaining FA-50s, Ms. Consuelo said.

Other military planes involved with the mission managed to safely return to Mactan Airbase in Cebu province, she added.

Also on Tuesday, the Philippine military spotted 260 Chinese ships within the country’s exclusive economic zone (EEZ) in February, spokesperson Francel Margareth Padilla-Taborlupa told the same news briefing.

There were two People’s Liberation Army Navy and nine Chinese coast guard vessels spotted at Scarborough Shoal, according to Philippine Navy Rear Admiral Roy Vincent T. Trinidad.

Philippine authorities also monitored a single Chinese navy ship and seven coast guard vessels at Second Thomas Shoal, he said at the same media briefing.

“Their persistent illegal presence in the West Philippine Sea blatantly disregards the 2016 arbitral tribunal ruling and infringes upon our sovereignty and sovereign rights,” said Ms. Taborlupa, referring to areas of the South China Sea within Manila’s 200-nautical mile EEZ.

The Chinese Embassy in Manila did not immediately reply to a Viber message seeking comment.

China claims sovereignty over almost the entire South China Sea, deploying an armada of coast guard vessels to protect what it considers its territory, hundreds of kilometers off its mainland. A United Nations-backed court based in The Hague in 2016 voided its claims for being illegal.

SC justice seeks return of P60-B PhilHealth funds from national Treasury

JUSTICE ANTONIO T. KHO, JR. — SC.JUDICIARY.GOV.PH

By Chloe Mari A. Hufana, Reporter

A PHILIPPINE Supreme Court (SC) associate justice on Tuesday called for a major overhaul of the Philippine Health Insurance Corp. (PhilHealth), including changes to its board, over its failure to fully implement mandated benefits for members.

During a court hearing on lawsuits questioning the transfer of P89.9 billion in the agency’s funds to the national Treasury, Justice Antonio T. Kho, Jr. called out the government for PhilHealth’s shortcomings, saying the burden should not fall on shortchanged members.

He also urged PhilHealth to ask President Ferdinand R. Marcos, Jr. to return the P60 billion in PhilHealth funds that were transferred to the national Treasury as unprogrammed funds, arguing that the funds should instead be used to expand benefits, improve services, and hire additional personnel to address the country’s healthcare needs.

“Probably, it’s time to overhaul PhilHealth and change the board for not complying with what the law requires,” he told Health spokesman Albert Francis E. Domingo during the third oral arguments at the Supreme Court building in Manila.

“It’s not a person’s fault for not availing [himself] all of these benefits,” Mr. Kho told the hearing. “Apparently, in your own words, it’s the fault of the administration, the last administration, or the previous administration, and it’s the fault of the PhilHealth board. Let’s not make people suffer because the money is there,” he added in mixed English and Filipino.

“The government will not give it to PhilHealth to serve as health benefits for our people.”

Mr. Domingo explained to the full court the process of how PhilHealth computes its request for a yearly budget.

Mr. Kho scolded PhilHealth and Health officials for disregarding the law when it comes to its budget requests for subsidy.

“When you come up with your budget request for the subsidy, you don’t actually consider the taxes being collected that Congress passed for purposes of subsidy for indirect contributors,” Mr. Kho said.

Mr. Domingo said the observation was correct, adding that they compute the yearly subsidy “based on the need.”

“Budget principles require that it is needs-based,” he told the hearing. “If we follow based on the projected fund ceiling or availability, it might not match.”

Mr. Kho said the PhilHealth budget should be based on needs, but cited its failure to address the health needs of Filipinos.

“The problem there is PhilHealth limits the funding so that you don’t address the health needs of the Filipino people,” he said. “You define your own limits. Congress allocates the budget, provides for the collection of taxes and answers for the subsidy of PhilHealth for indirect contributions.”

He also asked why the Department of Health failed to consider the tax collections made by the Bureau of Internal Revenue (BIR) when preparing its subsidy request.

“Mathematically, it’s the premium rate,” Mr. Domingo said in reply. “The way that the premium rate is determined unfortunately is not actuarially fair.”

“It is not based on the spread of benefits that is due to the Filipino people. PhilHealth is really not paying enough, just 10% in 2024. That’s why it should be increased. And mathematically, the only way to do this is to increase the benefit packages, which we are doing now,” he added.

He also agreed with Mr. Kho’s observation that the Health department defines its own limits, adding this is the reason why “this particular case under litigation has been the signal it has been using to increase the benefits [of members].”

Mr. Kho then sought the return of the P60 billion from the government to PhilHealth. The insurer was supposed to transfer P29.9 billion more to the state before the tribunal stopped it from doing so in October.

“If the current administration recognizes that, thank you very much,” the magistrate said. “Therefore, they should restore it and bring the money back to PhilHealth.”

Under the law, a portion of the revenue from excise taxes on tobacco and alcohol products is used to fund the state health insurer.

These funds help expand PhilHealth coverage, particularly for indigent and poor Filipinos, ensuring their access to essential health services.

In 2024, the government initiated the transfer of P89.9 billion from PhilHealth to the national Treasury, labeling these as “excess funds.” The money was supposed to fund various projects including infrastructure and social services.

The transfer faced legal challenges, with the plaintiffs arguing that PhilHealth’s funds, taken from member contributions and specific taxes, should be exclusively used for health-related purposes, as mandated by the Universal Health Care Act.

Think tank urges PHL gov’t to issue EO on AI regulation

REUTERS/DADO RUVIC/ILLUSTRATION

PRESIDENT Ferdinand R. Marcos, Jr. should issue an executive order (EO) to regulate the use of artificial intelligence (AI) temporarily pending legislation, according to a House of Representatives think tank.

In a February report, the Congressional Policy and Budget Research Department (CPBRD) said the order should include a clause forming a government-wide AI council to consolidate state efforts to regulating AI.

“Efforts in Congress should also be complemented by initiatives from the Executive branch, particularly the issuance of an EO that shall serve as the interim governing framework on AI,” CPBRD author Ephraim D. Valenzuela said in the 28-page report.

“The proposed council shall serve as a coordinating mechanism for all the government’s AI efforts,” he said. “It shall synchronize all the efforts of various government agencies, which currently operate in silos and each pushing their own AI agenda.”

The Philippines lags behind regional peers when it comes to creating an AI governance framework, according to the think-tank.

“It is quite clear that global and regional progress in AI regulation and governance are well ahead of policy developments in the Philippines,” it added.

The Southeast Asian nation could benefit by adopting global best practices in formulating its own AI policies. “It allows policymakers to infer from the presently established frameworks and guidelines, and not build its AI policy from the ground up… saving precious time and resources.”

There are at least 16 bills seeking to establish a regulatory framework for AI use and development pending at the House information and communications technology committee.

Lawmakers should carefully consider whether it would be more advantageous for the country to implement a single, comprehensive AI law versus creating sector-specific laws, such as for health, education and energy, the CPBRD said.

Congress should define AI clearly, it said, adding that it should adopt globally accepted definitions to ensure the Philippines is in-line with other nations.

“Adopting current definitions is not only practical but also allows for harmonization and interoperability at the regional and global levels especially with that of our major trading partners,” it added.

An AI council should also be considered for the AI laws, which could be composed of government agencies and representatives from business industries, academe and nongovernment organizations.

The Department of Science and Technology could be the more ideal head of the proposed council given its mandate as the lead agency tasked to provide central direction, leadership, and coordination of the government’s scientific, technological and innovative efforts, the CPBRD said. — Kenneth Christiane L. Basilio

Joint Congressional probe sought over Comelec’s alleged lack of certification for automated system

PHILSTAR FILE PHOTO

A PHILIPPINE senator on Tuesday called for a joint Congressional investigation following reports that the Commission on Elections (Comelec) has failed to obtain a legally mandated certification for the automated election system (AES), which will be used for the upcoming May 12 local and national election.

“We should ask the Comelec, through the joint congressional oversight committee, where that certification is that proves that our automated election system is working properly,” Senator Ana Theresia N. Hontiveros-Baraquel said in a statement in mixed Filipino and English.

“If the certification is not yet available, they should explain to the people why it has not been released, despite the clear deadline under the law,” she added.

Ms. Hontiveros said that Comelec is required to obtain a certification from an established international certification entity that ensures the AES is properly working, secure, and accurate. This is mandated by section 11 of the Republic Act (RA) 8436, as amended by RA 9369, the Election Automation Law.

She said that the certification should have been issued not later than three months before the election date.

“This means that Pro V & V, Inc., the international certification entity contracted by Comelec, should have already issued a certification on or before Feb. 12, 2025,” she added.

Ms. Hontiveros said that Comelec should submit a formal explanation to the oversight committee if ever they will proceed with the use of the AES without certification, emphasizing the lack of certification “would severely affect public confidence” in the upcoming elections.

Moreover, the senator said the joint congressional oversight committee should investigate the alleged vulnerabilities of the AES in procedures related to the counting and transmission of election results.

She added that Comelec should clarify whether the modem for the AES should be attached only for transmissions or during the testing phase, as stated in the first version of Comelec’s instructions.

“There are only about 70 days left before election day, so the Senate and House of Representatives must act immediately and ensure that all legal mechanisms are followed for clean and orderly automated elections,” she said. “These reported issues must be clear, so that the people will have no fear or doubt come May 12.”

In a separate new briefing, Comelec Chairman George Erwin M. Garcia said that the Technical Evaluation Committee (TEC) is looking to secure the certification of AES before the end of the month.

Mr. Garcia clarified securing the certification falls within the mandate of the TEC, an independent entity.

He explained that the hardware and software components of the AES have so far been tested, while the testing for the Online Voting and Counting System for overseas voting is expected to be completed this week.

“(The testing) will be done this week. Hopefully, before the end of this month the TEC will obtain a certification,” Mr. Garcia said in mixed English and Filipino in a livestreamed press conference.

The Philippines is set to conduct its mid-term national and local election on May 12 (Monday). Up for grabs are 12 spots in the 24-seat Senate and 317 congressional seats, thousands of local officials will also be elected.

DISQUALIFICATION CASE
Meanwhile, the Commission on Tuesday dismissed a disqualification case against five members of the Tulfo family gunning for seats in both chambers of Congress in the 2025 midterm elections, citing incomplete documents.

Comelec’s First Division on Tuesday junked the petition of Virgilio R. Garcia, dated Feb. 14, against ACT-CIS Rep. Erwin T. Tulfo, ACT-CIS Rep. Jocelyn Pua-Tulfo, Quezon City Rep. Ralph Wendell Tulfo, former Tourism Secretary Wanda Tulfo-Teo, and broadcast journalist Bienvenido T. Tulfo.

The 3-page order, dated March 4, said the petitioner failed to provide copies of the respondents’ certificates of candidacy, “which would have been vital in order to properly verify the necessary information alleged.”

The order also noted it cannot verify whether the petition was properly served to the respondents.

Comelec Chairman Garcia said in an ambush interview that the plaintiff may still file for a motion for reconsideration.

Provided that the motion is properly filed and meets the required form, Mr. Garcia said the case could be forwarded to the Comelec en banc for review.

He also urged future petitioners before the poll body to make sure all necessary documents are complete before filing.

“Otherwise, the petition will be dismissed on a technicality and will no longer proceed to a decision on the merits,” he said in Filipino.

He noted that attaching a certified true copy of a certificate of candidacy is crucial in a petition for disqualification, denial of due course, or cancellation of candidacy, as it serves as proof that the individual is officially a candidate in the elections.

The petitioner argued that the respondents’ status as members of what he considers a political dynasty constitutes grounds for disqualification from the May 2025 elections.

Mr. Erwin T. Tulfo, a frontrunner in the tight senatorial race, is also facing another disqualification case filed last week, citing questions about his nationality, among others. — Adrian H. Halili and Chloe Mari A. Hufana

DoE bares nuclear emergency plan

STOCK PHOTO | Image by Markus Distelrath from Pixabay

THE Department of Energy (DoE) has strengthened its preparedness measures to address potential nuclear and radiological emergencies by coming up with a plan that establishes protocols and procedures.

In a statement on Tuesday, the DoE said it has finalized the National Nuclear and Radiological Emergency Preparedness and Response Plan (RADPLAN), following write-shops and a review by the Department of Science and Technology – Philippine Nuclear Research Institute Technical Working Group.

“This initiative aims to strengthen the country’s ability to mitigate and respond to nuclear and radiological emergencies by establishing clear protocols, enhancing inter-agency coordination, and ensuring alignment with international safety standards,” the department said.

The RADPLAN establishes clear procedures for protecting public health and the environment while outlining coordinated response strategies for nuclear and radiological emergencies.

The plan also addresses potential incidents from various sources, including non-power applications of nuclear and radiological technologies such as medical diagnostics and industrial quality control.

Under the Philippine Energy Plan, the country aims to have commercially operational nuclear power plants with at least 1,200 megawatts by 2032. — Sheldeen Joy Talavera

DA, NFA urged to monitor rice prices

PHILIPPINE STAR/RYAN BALDEMOR

THE government should closely monitor rice retail to prevent price gouging and stop traders from exploiting farmers who sell rice at low farmgate prices, a congressman said on Tuesday.

In a statement, Quezon Rep. Wilfrido Mark M. Enverga urged the Department of Agriculture (DA) and National Food Authority (NFA) to step up its price monitoring activities and intervene to stabilize rice prices.

“We need to ensure that our farmers earn a fair income while keeping prices affordable for consumers,” Mr. Enverga, who heads the House of Representatives agriculture panel, said in Filipino.

Palay farmgate prices in February averaged at P20.70, according to the Philippine Statistics Authority. DA data showed that a kilo of regular milled rice averaged at P47.20 last month.

Mr. Enverga recommended that DA and NFA create a “real-time digital price monitoring system” to inform consumers and producers about the range of rice prices, aiming to reduce artificially inflated prices.

“There should be clear pricing to avoid deceiving farmers. If there is price tracking in the market, we can immediately see who is cheating,” he said. — Kenneth Christiane L. Basilio

BI still studying Guo’s escape

ALICE L. GUO — SENATOR RISA HONTIVEROS FACEBOOK PAGE

THE Bureau of Immigration (BI) said that it has yet to determine how dismissed Bamban Mayor Alice L. Guo and her cohorts had escaped the Philippines last year, the agency confirmed during a Senate committee hearing on Tuesday.

Under Senator Ana Theresia Hontiveros-Baraquel’s scrutiny, BI Intelligence Chief Fortunato Manahan, Jr. admitted the agency has no knowledge of how they went past Philippine borders undetected. 

Mr. Manahan said that the BI had sent written letters to their Asian counterpart bureaus, however, no written replies have been received, as of March 4.

“No official written replies have been received by the (BI) as of today, but, from informal channels there they have stated that there have been no results or information with regard to the arrival and departure of the Guos,” he added.

National Intelligence Coordinating Agency (NICA) Director Ferlu J. Silvio said that it was possible she and her companions had fled the country via Tawi-Tawi province.

“The Tawi-Tawi area is much nearer…the average sailing of boats is at 400 to 500,” Mr. Silvio added.

Ms. Hontiveros also asked for updates on BI’s internal investigation into officials and personnel who may have helped Ms. Guo escape the country. 

“We will check if there’s any from the Office of the Commissioner… As far as I’m concerned, ma’am, (I have no information), because another office is in charge of that,” Mr. Manahan said.

Separately, BI Commissioner Joel Anthony M. Viado said that there is no evidence from the agency’s initial internal investigation, that proves any personnel were involved.

“There is no evidence that personnel of the agency are involved in Guo’s illegal exit,” Mr. Viado said in a statement.

Ms. Guo and her cohorts fled the country in July. She had reportedly traveled to Malaysia and Singapore, then to Indonesia a month later using her Philippine passport, according to the Presidential Anti-Organized Crime Commission (PAOCC).

She has been accused of coddling illegal Philippine offshore gaming operators in Bamban town in Tarlac, where she ran and won for the first time as mayor in 2022.  Raided by authorities in March, an illegal hub on land she partially owned had been linked to scamming operations. — Adrian H. Halili

5 dead in South Cotabato collision

COTABATO CITY — Five individuals, including two women, died in an accident involving two motorcycles in a barangay in Tupi, South Cotabato at dusk Monday.

Officials of the Tupi Municipal Police Station (MPS) and the director of the Region 12 police, Brig. Gen. Arnold P. Ardiente, separately said on Tuesday that the fatalities were riding the two motorcycles that figured in the highway mishap.

Senior Master Sgt. Rea Mae B. Gatinao, spokesperson of the Tupi police force, said three of the victims, two of them women, died instantly from injuries caused by the accident.

The male driver of the other motorcycle and his companion also both died in a hospital where they were brought for treatment.

Ms. Gatinao, citing accounts of witnesses and police probers who responded to the incident, said the speeding motorcycle veered towards the other lane of the highway in Sitio Tulacabong in Barangay Crossing Rubber and hit head-on the other motorcycle, ridden by the two women and their male companion who all died immediately at the scene.

The two motorcycle drivers who perished in the accident do not have driving licenses, according to police investigators and barangay officials. Their badly damaged motorcycles are now in the custody of the Tupi MPS.

Ms. Gatinao and Mr. Ardiente both refuted claims that the two motorcycles were racing at an unlit stretch of the highway in Barangay Crossing Rubber.

Mr. Ardiente said the accident was a head-on collision of two motorcycles from the opposite directions of the highway. — John Felix M. Unson

P680K worth of meth seized in Pangasinan city sting

LOREN BISER-UNSPLASH

BAGUIO CITY — Philippine authorities arrested an alleged “high-value target drug personality,” in an early Tuesday sting that also led to the confiscation of crystal meth (shabu) worth P680,000.

The raid was led by the Philippine Drug Enforcement Agency (PDEA) in Pangasinan, Urdaneta City police, and Philippine National Police Drug Enforcement Group -Special Operations Unit 1.

According to PDEA-Region 1 director Joel B. Plaza, 51-year-old Jimmy Andres Pablo from San Manuel, sold a knot-tied transparent plastic containing suspected shabu, weighing more or less 100 grams to an undercover agent.

Authorities also seized from Mr. Pablo an improvised shotgun pistol, four pieces of live ammunition for a 12 gauge shotgun, a mobile phone, a motorcycle, assorted keys, two identification cards, a brown paper bag, a black body bag and several drug paraphernalia, and also the buy-bust money to be presented as evidence of the drug deal during Pablo’s trial for illegal drug sale.

Aside from the drug charges, Mr. Pablo will also be facing illegal firearms possession and violation of the gun ban now in effect because of the upcoming May 2025 elections. — Artemio A. Dumlao

3 hurt in Zamboanga del Norte grenade attack

COTABATO CITY — Three individuals were hurt in an explosion that ripped through a residential area in a barangay in Kalawit, Zamboanga del Norte on Monday afternoon.

Officials of the Kalawit Municipal Police Station and Brig. Gen. Roel Cuevas Rodolfo, director of the Police Regional Office-9, said on Tuesday that the grenade explosion injured Arnold Yu Lubaton, 69, Renel Elmenzo Labina, 38, and Honeylette Pagador Labina, 33.

Mr. Lubaton is a known staunch endorser of the reelectionist mayor of Kalawit, Salvador Antojado, Jr.

The Kalawit Municipal Police Station, in a report to PRO-9, stated that Mr. Lubaton was in his house, along with the Labinas, when someone threw a grenade from outside and hurriedly ran away as the explosive went off.

Police investigators said the grenade exploded right in the front door of Mr. Lubaton’s house.

He and his two guests sustained shrapnel wounds in different parts of their bodies and were immediately taken by emergency responders to a hospital for treatment.

Local executives and officials of the Kalawit police force are still unsure whether the bombing of Lubaton’s house is related to his support for the incumbent mayor. — John Felix M. Unson

Trade wars erupt as Trump tariffs take effect

FLAGS wave in the wind in Windsor, Ontario, a Canadian town that borders Detroit, Michigan in the US on Feb. 4, 2025. — REUTERS

WASHINGTON — US President Donald Trump’s new 25% tariffs on imports from Mexico and Canada took effect on Tuesday, along with a doubling of duties on Chinese goods to 20%, launching new trade conflicts with the top three US trading partners.

The tariff actions, which could upend nearly $2.2 trillion in two-way annual US trade went live at 12:01 a.m. EST (0501 GMT), hours after Mr. Trump declared that all three countries had failed to do enough to stem the flow of the deadly fentanyl opioid and its precursor chemicals into the US.

China responded immediately after the deadline, announcing additional tariffs of 10%-15% on certain US imports from March 10 and a series of new export restrictions for designated US entities.

Canada and Mexico, which have enjoyed a virtually tariff-free trading relationship with the US for three decades, were poised to immediately retaliate against their longtime ally.

Canadian Prime Minister Justin Trudeau said Ottawa would respond with immediate 25% tariffs on C$30 billion ($20.7 billion) worth of US imports, and another C$125 billion ($86.2 billion) if Mr. Trump’s tariffs were still in place in 21 days. He said previously that Canada would target American beer, wine, bourbon, home appliances and Florida orange juice.

“Tariffs will disrupt an incredibly successful trading relationship,” Mr. Trudeau said, adding that they would violate the US-Mexico-Canada free trade agreement signed by Mr. Trump during his first term.

Ontario Premier Doug Ford told NBC that he was ready to cut off shipments of nickel and transmission of electricity from his province to the US in retaliation.

Mexican President Claudia Sheinbaum was expected to announce her response during a morning news conference in Mexico City on Tuesday, the country’s Economy ministry said.

STACKING CHINA TARIFFS
The extra 10% duty on Chinese goods adds to a 10% tariff imposed by Mr. Trump on Feb. 4 to punish Beijing over the US fentanyl overdose crisis. The cumulative 20% duty also comes on top of tariffs of up to 25% imposed by Mr. Trump during his first term on some $370 billion worth of US imports.

Some of these products saw US tariffs increase sharply under former president Joseph Biden last year, including a doubling of duties on Chinese semiconductors to 50% and a quadrupling of tariffs on Chinese electric vehicles to over 100%.

The 20% tariff will apply to several major US consumer electronics imports from China previously untouched by prior duties, including smartphones, laptops, videogame consoles, smartwatches and speakers and Bluetooth devices.

China’s new tariffs announced on Tuesday targeted a wide range of US agricultural products including certain meats, grains, cotton, fruit, vegetables and dairy products.

It also added 15 US entities to its export control list and 10 US entities to its unreliable entity list.

The Commerce ministry earlier in the day said Washington mistakenly “shifted the blame” for its fentanyl crisis to Beijing.

The state-backed Global Times newspaper said on Monday Beijing’s retaliation would most likely target US agricultural and food products.

US farmers were hard hit by Mr. Trump’s first-term trade wars, which cost them about $27 billion in lost export sales and conceded share of the Chinese market to Brazil.

RECESSION FEARS
The tariffs on Mexican and Canadian products could have much deeper repercussions for a highly integrated North American economy that depends on cross-border shipments to build cars and machinery, refine energy and process agricultural goods.

“Today’s reckless decision by the US administration is forcing Canada and the US toward recessions, job losses and economic disaster,” Canadian Chamber of Commerce Chief Executive Officer Candace Laing said in a statement.

She said the US tariffs will fail to usher in a “golden age” coveted by Mr. Trump but instead raise costs for consumers and producers and disrupt supply chains. “Tariffs are a tax on the American people.”

Matt Blunt, president of the American Automotive Policy Council representing Detroit automakers, called for vehicles that meet the US-Mexico-Canada Agreement’s regional content requirements to be exempted from the tariffs.

Even before Mr. Trump’s tariffs announcement, US data on Monday showed factory gate prices jumped to a nearly three-year high, suggesting that a new wave of tariffs could soon undercut production.

Mr. Trump’s confirmation that the tariffs would proceed sent financial markets reeling with global stocks tumbling and safe-haven bonds rallying. Both the Canadian dollar and Mexican peso fell against the greenback.

PILING ON
Mr. Trump has maintained a blistering pace of tariff actions since taking office in January, including fully restored 25% tariffs on steel and aluminum imports that take effect March 12, rescinding prior exemptions.

Mr. Trump’s “America First” agenda, aimed at redrawing trade relationships in favor of the US, is expected to be a centerpiece of his Tuesday night address to a joint session of Congress.

Mr. Trump on Saturday opened a national security investigation into imports of lumber and wood products that could result in steep tariffs. Canada, already facing 14.5% US tariffs on softwood lumber, would be hit particularly hard.

A week earlier, Mr. Trump revived a probe into countries that levy digital services taxes, proposed fees of up to $1.5 million on every Chinese-built ship entering a US port and launched a tariff investigation into copper imports.

These add to his plans for higher “reciprocal tariffs” to match the levies of other countries and offset their other trade barriers, a move that could hit the European Union hard. — Reuters

Europe prepares charm offensive in Vietnam

REUTERS

HANOI — European leaders are planning visits to Vietnam in coming months to strengthen ties with the Southeast Asian nation, officials said, amid tensions with Washington that could impact their exports to the United States.

Former US President Joseph Biden pushed hard to boost US influence in the former foe, considering the country a key partner in his strategy to contain China, but bilateral relations may weaken if his successor Donald Trump imposes duties on Hanoi, which is a potential target of his threatened reciprocal tariffs due to its large trade surplus.

Amid this growing uncertainty, European countries are intensifying their contacts with Vietnam, with the head of the European Commission Ursula von der Leyen and France’s President Emmanuel Macron both planning visits in the next months, European officials and diplomats said, noting the trips have long been planned and are not yet finalized.

“The tide of tariffs and export controls is rising…We want to create new opportunities to trade and invest with trusted partners,” Ms. Von der Leyen told top officials from Southeast Asian bloc ASEAN in a video message when they were gathered last week in Vietnam’s capital Hanoi.

Mr. Macron could travel to Vietnam in late May, with the aim of further boosting ties with the former colony after Paris formally elevated diplomatic relations last year, while Ms. Von der Leyen could visit earlier with the goal of formally upgrading ties, a senior EU official said, adding EU trade commissioner Maros Sefcovic may precede them in April.

Mr. Macron’s office declined to comment. A spokesman for the European Commission could not confirm any official visit at this stage. Vietnam’s Foreign ministry did not reply to requests for comment.

FROM RAILWAYS TO AID
The European Union (EU) imported $52 billion worth of goods from Vietnam last year, less than half of US imports but still Vietnam’s third export market thanks also to an existing free trade deal.

US manufacturers in Vietnam, whose business relies on exports to the US more than their European rivals, expect cuts in their workforce if Mr. Trump imposes tariffs, a survey found.

That scenario, despite being the result of what the EU official described as a “catastrophic” shift in global trade, could however lead to more Vietnamese exports to the EU and may in turn facilitate investments in Vietnam by European companies, as they might access redundant talent more easily, he said.

That comes as Vietnam wants to diversify military supplies and boost public spending on infrastructure, including a major railway project, with European companies racing to win contracts.

On development policy, Europe is already working to take on the US mantle after Mr. Trump froze foreign aid.

Belgium is setting up a fund that would contribute to restart the temporarily suspended recovery of areas contaminated with agent orange sprayed by US forces during the Vietnam War, the country’s ambassador to Vietnam Karl Van den Bossche said, noting the plan was to turn the reclaimed land into profitable industrial zones. — Reuters

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