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Technicians graduate from Toyota Motor Philippines School of Technology

In photo are (standing, fifth from left) Toyota Dealers Association of the Philippines Representative Jym Joshner Yaokasin, Toyota Motor Philippines (TMP) President and TMP Tech Science & Technology Council Chairman Masando Hashimoto, Technical Education and Skills Development Authority (TESDA) Region IV-A Regional Director Archie Grande CESO III, TESDA Laguna Provincial Director Zoraida Amper, TMP Tech Chairman Jose Maria Atienza, TMP Tech Senior Board Adviser Dr. David Go, and TMP Tech President Jose Maria Aligada, together with TMP network officers, TMP Tech instructors, and the new graduates. — PHOTO FROM TMP TECH

A TOTAL OF 231 scholars recently graduated from the Toyota Motor Philippines School of Technology (TMP Tech), said to be a premier automotive technical-vocational institution, at its 14th commencement exercise for its Automotive Servicing General Job, Automotive Body Panel Repairing, and Automotive Body Painting courses at Toyota Motor Philippines’ industrial complex in Santa Rosa City, Laguna. With the addition of the new finishers, the institution has now produced a total of 2,792 graduates from its regular and specialized training programs since 2014.

Starting its operations in 2013, TMP Tech was founded by Toyota Motor Corp. (TMC) Honorary Chairman Dr. Shoichiro Toyoda and TMP Founding Chairman Dr. George SK Ty to become a “world-class technical and vocational institution that develops Filipino youth to become highly competent automotive professionals for the local and international Toyota dealer network,” TMP Tech said in a release.

Counting the cost of funds denied to Filipinos: The non-allocation of PhilHealth funds

Let us begin by describing the healthcare situation through the realities of ordinary Filipinos.

The 2023 Philippine National Health Accounts show that for every P10,000 spent on healthcare, a significant P4,000 is shouldered by the individuals themselves, placing a heavy and often overwhelming financial burden on the average Filipino.

Supreme Court Associate Justice Jhosep Lopez narrated during one of the oral arguments that he incurred a P7 million hospital bill for undergoing treatment for esophageal cancer, of which the country’s state insurer, the Philippine Health Insurance Corp. (PhilHealth), only covered a minuscule portion — 0.71% or P50,000. For an average middle-income household, this will mean depleting a lifetime of savings and, in many cases, incurring debt.

Those who cannot afford the cost of healthcare may skip going to health facilities altogether. The 2022 National Demographic and Health Survey (NDHS) shows that among 15- to 49-year-old women respondents, almost half expressed that the most common problem in accessing healthcare was getting money for treatment (42%).

Amidst all these, in 2024, the Department of Finance (DoF) ordered PhilHealth to remit P89.9 billion of its alleged “excess” funds to the national treasury to fund the unprogrammed appropriations. This order was based on a provision, inserted for the first time, that authorizes government-owned and -controlled corporations (GOCCs) to allocate a portion of their fund balances to finance key programs in the Unprogrammed Appropriations, which includes non-health programs such as the government counterpart funding for the Panay-Guimaras-Negros Island Bridges and the Metro Manila Subway Project.

This brazen move by Congress and the Executive (through the DoF) compelled citizens’ groups to seek redress from the Supreme Court by filing a petition in August 2024, challenging the legality of the fund transfer. Two tranches of remittances totaling P60 billion were made before the Supreme Court issued a temporary restraining order. However, this P60 billion that was withdrawn from PhilHealth was just the tip of the iceberg.

The Universal Health Care Act, enacted in 2019, directs the collection of funds from sin taxes derived from alcohol, cigarettes, and sweetened beverages; in particular, the Sin Tax Reform Laws mandate that 80% of 50% of revenues from tobacco and sweetened beverages are allocated to PhilHealth. Other sources of PhilHealth funding are the following: 50% of the National Government’s share from the income of the Philippine Amusement Gaming Corp. (PAGCOR) and 40% of the Charity Fund of the Philippine Charity Sweepstakes Office (PCSO) for the ongoing improvement of PhilHealth benefit packages.

The available data reveal that since 2019, PhilHealth has yet to receive a single centavo of its share from PAGCOR and PCSO since the implementation of the UHC Law. In total, the funds withheld from PhilHealth would amount to P272.34 billion. If the P60-billion fund transferred by PhilHealth to the national treasury is to be included, which is also sourced from the sin taxes, the total amount withheld from PhilHealth will yield a staggering P332 billion (see the accompanying table).

This shows that the budgeting process goes far beyond simple allocations from the national budget. It involves multiple layers of authorization before public funds are disbursed. Agencies must first secure allotment releases through General Allotment Release Orders (GAROs) for General Fund items and Special Allotment Release Orders (SAROs) for budget items needed for special budget requests, like the National Health Insurance Program (NHIP), which only allows them to incur obligations, not to spend cash.

As clarified by the Supreme Court in the case Belgica vs Executive Secretary (G.R. 208566), SAROs do not guarantee fund release and may even be revoked, making the Notice of Cash Allocation (NCA) the ultimate directive and indicator for government spending.

Despite the Department of Budget and Management (DBM) reporting high allotment release rates, actual disbursement — where goods and services are delivered and paid for — depends on the issuance of NCAs.

But the DBM has systematically deprived the provision of cash allocation for NHIP and inexplicably denied the same for the PhilHealth benefit improvement packages in the past six to seven years.

Adding insult to injury, as the reduction of PhilHealth funds was being challenged over at the Supreme Court, Congress’ Bicameral Conference Committee decided to give zero budget to PhilHealth for fiscal year 2025, effectively slicing at least P69.81 billion from the country’s health insurance that should have been allocated to it based on the calculated allocations from earmarked revenues from the sin taxes for the said year.

It would seem that the neglect and deprioritization of spending on PhilHealth since 2023 paved the way for a zero budget in 2025, as approved at the bicam level. A significant cut of P40 billion was made to the 2024 PhilHealth budget, which was also dastardly engineered at the bicameral conference committee level, where there was no public scrutiny.

COUNTING THE COST: HOW MUCH HEALTHCARE WAS DENIED TO FILIPINOS?
The funding withheld from PhilHealth since 2019 could have already made an impact in reducing the high out-of-pocket health expenses of Filipinos, which, based on the 2023 Philippine National Health Accounts, is about 44% of the country’s total health expenditure, or P550.2 billion.

Let us give some examples of where the PhilHealth funds should have gone. For instance, the full implementation of PhilHealth’s Konsulta package — a set of comprehensive outpatient benefits which includes consultation, selected diagnostic and laboratory tests, and medicines — which costs P194 billion annually, could significantly reduce high out-of-pocket expenses in the long run by providing cost-effective preventive interventions at the primary level, thereby offering healthcare support that reaches communities.

This shift could potentially change the healthcare focus from curative care, which is typically more expensive, to preventive care. Preventive care not only costs less but also enables early intervention, leading to better health outcomes and a reduced burden on hospitals. However, it currently accounts for only about 7% of the country’s health expenditures. The Universal Health Care Law also requires that the Konsulta service be rolled out and implemented in 2023. As of June 30, 2024, only 20% of the population had registered with an accredited PhilHealth Konsulta provider.

It is essential to recognize that UHC is not solely about health financing, which is done primarily through PhilHealth. Health financing should be complemented by a public health system that efficiently, effectively, and equitably provides affordable health services to the people. This implies the ongoing need to strengthen and scale up the capacity of DoH to ensure that, with the expanded utilization of PhilHealth benefits, trained personnel, medical facilities, and supplies are there to put those PhilHealth benefits to work. Absent these medical complements, the PhilHealth benefits will have limited use and impact.

The denial of P332 billion mandated to go to PhilHealth by law since 2019 also betrays a lack of understanding and appreciation of policymakers regarding the role of social insurance as a social protection measure that promotes equity and redistribution in society. It seems that this lack of appreciation of the role of a social health insurance flows from a policy mindset that sees the value of public services from a fiscally conservative perspective. This limited policy mindset is exemplified by the following comments such as when the Executive and Congress sought to justify the fund transfer by insisting that “may mga natutulog na pera na binabayaran pa natin ng interest, mas mabuti na kung hindi nagagamit ang iba diyan at natutulog lang, sayang naman, gamitin natin (There are some dormant funds that we are still paying interest on, it would be better if some of them were not used and just lying around, it’s a waste, let’s use them),” (Finance Secretary Ralph Recto, Aug. 19, 2024); “…hindi puwedeng sisihin na nagkulang tayo sa pagbibigay sa kanila [PhilHealth] kasi nga ang daming pera na nandyan. Hindi nila pinamimigay ’yong pera doon sa mga nangangailangan, tinuturuan din natin sila ng leksyon… (…we can’t be blamed for not giving them [PhilHealth] enough because there’s a lot of money there. They’re not giving that money to the needy, we’re also teaching them a lesson…),” (Senator Grace Poe, Dec. 12, 2024). Furthermore, Solicitor General Menardo Guevarra remarked that “the Congress’ inclusion of Special Provision 1d in the General Appropriations Act of 2024 and DoF’s issuance of Circular No. 003-2024 are the government’s common sense approach” (Feb. 4).

What needs to be underscored to our policy makers are two things: one, the Filipino people have a right to health, the fulfillment of which has been mandated by law; and two, increasing (rather than reducing) the budget of PhilHealth is an investment in the human development of our people, which in turn can help them become more productive citizens.

Unless the full potential of the UHC is realized, there is no room to discuss if there are indeed “excess” funds in PhilHealth. For example, this means that PhilHealth and the Department of Health should first fully implement the Konsulta Package and make sure all patients who need the basic PhilHealth package are covered.

In this context, we look forward to the decision of the Supreme Court, which can further shed light on the true state of the PhilHealth funds. Some questions to ponder are: Is there such a thing as “excess” funds when the 10-year implementation of the UHC is still ongoing, and unpaid recorded and recognized hospital claims remain outstanding? During the Supreme Court Oral Arguments on the PhilHealth fund transfer, Associate Justice Amy Lazaro Javier cited Commission on Audit reports showing that PhilHealth was actually “bankrupt.” It was also established that PhilHealth’s insurance contract liabilities exceeded its reserve fund.

Furthermore, Associate Justice Benjamin Caguioa thoroughly questioned the absence of a Special Account in the General Fund (SAGF) of the earmarked revenues from the sin taxes. During the Oral Arguments, the Bureau of the Treasury admitted that special funds derived from sin taxes are commingled with all the other funds of the government in the general fund. According to Justice Caguioa, this matter of establishing guardrails for the specific revenue measures earmarked for the implementation of the UHC Law may become part of the Supreme Court’s decision. We are hopeful that the Supreme Court will issue a ruling in favor of the Filipino people who are all PhilHealth members.

Meanwhile, there is a new Supreme Court petition filed by 14 organizations and individual petitioners questioning the non-allocation of mandated funds for PhilHealth. Among the petitioners is former health secretary Dr. Jaime Galvez Tan, the first chairperson of the PhilHealth Board, who is known for his decades-long work and advocacy on the shift to a primary healthcare approach to health.

As the budget legislative season approaches, we join our fellow budget advocates in calling for a genuinely open, transparent, and accountable process in budget-making at all levels. In particular, there is a need to prevent anomalous and highly irregular decisions by the bicam committee from happening again. As such, the practice of secretive bicameral conference committee meetings must end.

We call on the legislators to allow the public to monitor all budget-related meetings; after all, the budget decisions arrived at in those meetings are about funds that came from us, the taxpayers, whether direct or indirect.

Finally, we respectfully remind our policymakers to follow the law on the automatic appropriation of earmarked revenues from sin taxes to PhilHealth. This law is the hard-earned fruit of a long and arduous advocacy waged by many citizens and health professionals together with like-minded government officials from the past. Let us not undo the gains that the Filipino people have won; instead, let us secure these and move forward.

 

Maria Victoria Raquiza, PhD, is an associate professor at the University of the Philippines National College of Public Administration and Governance (UP NCPAG) and co-convenor of Social Watch Philippines. Alce Quitalig is the senior budget specialist at Social Watch Philippines.

JMC offers discounts, low down on EV2 & EV3

JMEV EV3 — PHOTO FROM JMC PHILIPPINES

JMC PHILIPPINES is offering its two recently launched electric vehicles (under the JMEV sub-brand) with discounts and low down payment deals from July until the end of September this year. The EV3 offers a range of 330 kilometers, while the more compact EV2 can travel up to 210 kilometers on a full charge, and is seen as a dependable, eco-friendly, and affordable mobility option.

The EV2 can be purchased with a down payment as low as P53,440, while the EV3 is available with a down payment starting at P63,040. Monthly payments for the models begin at P12,286.75 and P14,493.95, respectively.

The EV2 is available in three colors: Dynamic Green, Aurora White, and Future Cyan, while the EV3 offers a diverse color lineup including Aurora White, Sky Blue, Cherry Blossom Pink, and Dynamic Green. For more information, visit a JMC Cars dealership, https://jmcph.com/ or follow official channels on Facebook and Instagram (JMC Cars PH).

Southstar Drug targets 800 stores by 2026

SOUTHSTAR DRUG

DRUGSTORE chain Southstar Drug is aiming to increase its store network to 800 by next year, with up to 60 store openings planned for this year.

“With plans to reach 800 stores by 2026, Southstar Drug remains committed to its founding belief: that healthcare should not be a privilege, but a promise — delivered humbly, one Filipino at a time,” the company said in a statement.

Asked where the store openings will be, the company said, “Generally, it is in Luzon and the National Capital Region (NCR) because our footprint is here.”

“A minimum of 25 stores will be in NCR as we have a sister company in the VisMin region called Rose Pharmacy, with which we have a synergy,” it said.

“This year we’re planning to open 50-60 stores. This is still largely dependent on the sites that will be acquired,” it added.

Last month, Southstar Drug opened its 700th store inside the University of the Philippines (UP)Diliman.

“The UP Diliman store symbolizes not just geographical expansion, but a natural and seamless integration into a vibrant academic community,” the company said.

“Southstar Drug has supported the University Health Services through annual donations and currently sponsors the UP Track and Field Team, demonstrating how presence can be purposeful without being promotional,” it added.

This year also marks the drugstore’s 88th year since being founded in the Bicol Region in 1937.

“From its roots in the Bicol region, Southstar Drug has steadily built a stronghold in South Luzon and Central Luzon, with key expansions in provinces like Pampanga, where its presence continues to grow,” the company said.

“It has also made its mark in Metro Manila, adapting to the evolving needs of urban communities through innovations like drive-thru pharmacies currently available in Muntinlupa, Marikina, and even in Pampanga as well,” it added.

It is also making strides in e-commerce, noting that its digital platform is “one of the most expansive in the country.”

“This ensures that access to medicine is just a few clicks away, even for those outside major cities,” the company said. — Justine Irish D. Tabile

Agricultural trade deficit narrows 16.8% in May

PHILSTAR FILE PHOTO

THE DEFICIT in the agricultural goods trade in May fell 16.8% year on year to $1.02 billion, according to the Philippine Statistics Authority (PSA).

Agricultural exports in May rose 19% to $734.42 million, the PSA said in a report.

It said agricultural exports accounted for 29.5% of two-way trade in farm goods, valued at $2.49 billion in May. Farm goods accounted for 10.1% of total exports.

Agricultural imports fell 4.8% year on year in May to $1.75 billion. Farm goods accounted for 16.6% of Philippine imports overall that month.

The $2.49 billion in agriculture trade in May was up 1.2% year on year. In April 2025 and May 2024, trade had risen 5% and 17.1%, respectively.

“In April 2025, the trade deficit registered an annual decrease of 6.1%, while an annual increase of 37.7% was recorded in May 2024.”

The PSA said exports of edible fruit and nuts and peel of citrus fruit or melons were valued at $257.99 million, accounting for 35.1% of agricultural exports.

Shipments to members of the Association of Southeast Asian Nations (ASEAN) in May hit $63.49 million, with Malaysia accounting for $27.33 million or 43% of the total.

Spain accounted for $53.39 million or 35.2% of Philippine agricultural exports to the European Union (EU). EU purchases totaled $151.77 million.

The PSA said cereals accounted for $452 million or 25.8% of all agricultural imports in May.

Vietnam accounted for $257.17 million or 36.7% of Philippine agricultural imports from ASEAN.

Within the EU, Spain was the Philippines’ top supplier of agricultural commodities, with imports valued at $39.27 million.

The top agricultural commodities imported from the EU were meat and edible meat offal, dairy produce, birds’ eggs, natural honey, edible products of animal origin, residues and waste from the food industries, and prepared animal fodder. — Kyle Aristophere T. Atienza

Original Birkin bag sells at auction for record $10 million

SOTHEBYS.COM

PARIS — The original bag custom-made for actress Jane Birkin, which became one of the era-defining designs of the 20th century, was sold in Paris on Thursday for a record €8.6 million ($10.04 million), auctioneer Sotheby’s said.

According to fashion lore, the first Birkin bag was born when the Franco-British actress and singer sat next to Hermes executive Jean-Louis Dumas on a flight in 1984 and told him she needed a stylish yet functional bag as a young mother.

Mr. Dumas immediately sketched out the rectangular handbag, with a dedicated space for baby bottles.

The company made that one for her, then started selling smaller versions to the public. The design became a hit and has helped fuel the growth of the fashion brand.

Regular Birkin bags sell for more than $10,000. The first one — which has Birkin’s J. B. initials on the flap and, unlike its descendants, has a strap that cannot be removed — was bought by a private Japanese buyer over the phone, Sotheby’s said. — Reuters

Ogilvy Creator Camp 2025 helps influencers grow as business leaders

Now in its second year, Ogilvy Philippines’ Creator Camp recently returned with an expanded program designed to help digital creators strengthen their business acumen and build sustainable, long-term careers.

Held at Ogilvy Philippines headquarters in Rockwell, Makati, the full-day session welcomed both new and returning participants — creators across lifestyle, tech, entertainment, and advocacy — who are looking to evolve from content producers into brand-led entrepreneurs.

Building on the pilot run in 2024, this year’s edition focused on helping creators develop skills in brand positioning, revenue planning, operations, and data-driven decision-making.

“The creator economy is booming, but for creators and influencers to truly thrive and build lasting legacies, they need to transcend the role of content producer and embrace that of a business leader,” said Elly Puyat, CEO of Ogilvy Philippines. “Our Creator Camp is engineered to bridge that critical gap. We provide the strategic insights and practical skills necessary not just to amplify their reach, but to monetize their creativity effectively and build enduring enterprises. This holistic, business-centric approach defines Ogilvy’s commitment to the creator community.”

Participants took part in guided discussions and interactive sessions led by Ogilvy’s business leaders and consultants. Topics included defining a clear brand story, leveraging audience data to optimize content, managing their platforms as legitimate operations, and identifying new monetization opportunities.

The day concluded with a panel discussion titled “Beyond Likes & Follows: Redefining Influence, Social Commerce, and Tomorrow’s Trends,” featuring Nestlé Philippines AVP and Head of Content Studio and Production Raffy Casas, Ogilvy Philippines Managing Partner Mike Garcia, Head of Consulting Manny Gonzales, Creative Director Dino Ocampo, and Senior Consultant for Influence and Creator and Influencer Council of the Philippines Board Director Jako de Leon.

“Understanding audience analytics and identifying key trends are no longer optional for creators; they are fundamental business requirements,” said Mr. Gonzales. “Our interactive workshop provided practical, hands-on experience that will enable our partners to make strategic adjustments that improve content performance and drive real business results. This is about empowering creators with the same data-driven decision-making capabilities that power leading businesses.”

 

SparkUp is BusinessWorld’s multimedia brand created to inform, inspire, and empower the Philippine startups; micro, small and medium enterprises (MSMEs); and future business leaders. This section will be published every other Monday. For pitches and releases about startups, e-mail to bmbeltran@bworldonline.com (cc: abconoza@bworldonline.com). Materials sent become BW property.

Yields end mixed amid cautious trade

YIELDS on government securities (GS) traded in the secondary market were mixed last week as the market was in a cautious mood after the Trump administration announced a 20% tariff on Philippine exports to the United States.

GS yields, which move opposite to prices, inched up by an average of 0.2 basis point (bp) week on week, according to the PHP Bloomberg Valuation Service Reference Rates as of July 11, published on the Philippine Dealing System’s website.

At the short end, rates of the 91-, 182-, and 364-day Treasury bills (T-bills) fell by 4.03 bps, 1.98 bps, and 1.46 bps week on week to 5.4305%, 5.6148%, and 5.6834%, respectively.

Meanwhile, at the belly, yields on the two- three-, four-, five- and seven-year Treasury bonds (T-bonds) went up across the board, rising by 1.22 bps (to 5.741%), 2.47 bps (5.8225%), 2.93 bps (5.8955%), 2.78 bps (5.9657%), and 1.92 bps (6.0950%), respectively.

Tenors at the long end fetched mixed rates. The 20- and 25-year debt papers saw their yields decline by 1.09 bps (to 6.5528%) and 1.65 bps (6.5375%). Meanwhile, the 10-year T-bonds went up by 1.29 bps to 6.246%.

GS volume traded reached P22.07 billion on Friday, significantly lower than the P56.07 billion recorded a week earlier.

Alessandra P. Araullo, chief investment officer at ATRAM Trust Corp., said in a Viber message that the local bond market traded sideways for most of the week, with the result of the Bureau of the Treasury’s (BTr) auction of reissued 10-year bonds held on Tuesday showing cautious sentiment.

“The Bureau of the Treasury fully awarded the P30-billion offering of FXTN 10-69, attracting a total of P64.04 billion in bids — more than twice the offered amount. Despite the strong demand, the accepted average rate of 6.128% landed close to the bid-side of secondary levels, reflecting investor reluctance to significantly extend duration,” she said in a Viber message.

“This also suggests that market players are wary of the persistent supply pressure building up on the belly of the curve.”

Meanwhile, shorter tenors benefited from the Bangko Sentral ng Pilipinas’ (BSP) hints on more rate cuts this year, Ms. Araullo said.

BSP Governor Eli M. Remolona, Jr. earlier said they have room for two more rate cuts this year amid benign inflation and weak economic growth. The Monetary Board has reduced benchmark borrowing costs by a cumulative 125 bps since it began its easing cycle in August last year.

“Offshore developments also played a role in capping yield movements. Tariff uncertainty and the rising risk of trade friction abroad sparked concerns about global growth moderation,” she added.

Nicholas Antonio T. Mapa, chief economist at Metropolitan Bank & Trust Co., said the market’s mood was generally cautious throughout the week after Mr. Trump announced that they plan to impose a 20% tariff rate on Philippine exports to the US.

For this week’s trading session, Ms. Araullo said GS yield movements could be driven by the BTr’s auction of P25 billion in reissued 10-year T-bonds on Tuesday. She said the bonds could fetch rates of 6.22% to 6.27%.

“This will be another gauge for investors’ demand for extending duration,” she said.

“Beyond domestic supply conditions, external factors — including potential inflation surprises and renewed global volatility stemming from fiscal or trade developments — may influence market sentiment,” Ms. Araullo added. — Abigail Marie P. Yraola

Trump tariffs 2.0

STOCK PHOTO | Image by Vectorjuice from Freepik

“This shows the danger of having tariffs that are under the unilateral control of one man,” declared Brad Setser, a former US trade official now with the Council on Foreign Relations (an independent American think tank focused on US foreign policy and international relations). “Trump’s action could easily spiral into a damaging trade war between the two democracies,” he added.

US President Donald Trump launched his global tariff assault into overdrive on Wednesday, July 9, announcing a new 50% tariff on US copper imports and a 50% duty on goods from Brazil, both to start on Aug. 1, the news agencies reported. The announcement came hours after he also informed Brazil that its “reciprocal” tariff on Aug. 1 would rise to 50% from 10%, a shockingly high level for a country with a balanced US trade relationship.

Brazilian President Luiz Inacio Lula da Silva responded to Trump’s letter by issuing a statement saying that any unilateral measure to increase tariffs would be met with a response in accordance with Brazilian law. Brazil is the 15th largest US trading partner, with total two-way trade of $92 billion in 2024, and a rare $7.4 billion US trade surplus, according to US Census Bureau data.

Trump has enacted a series of steep protective tariffs affecting nearly all goods imported into the United States. From January to April, the average applied US tariff rate rose from 2.5% to an estimated 27%, the highest level in over a century, according to Politico. Following later policy rollbacks, the rate was estimated as 15.8% as of June.

“Trump’s administration has been touting those tariffs as a significant revenue source. Treasury Secretary Scott Bessent said Washington has taken in about $100 billion so far and could collect $300 billion by the end of the year. The United States has taken in about $80 billion annually in tariff revenue in recent years,” Rappler noted. The Trump administration promised “90 deals in 90 days” from negotiations for counterproposals after he unveiled an array of country-specific duties in early April. So far, only two agreements have been reached, with Britain and Vietnam. Even before the end of the 90 days, the countries who had not negotiated before the July 30 deadline were already slapped with elevated tariffs from the baseline 10% set in April.

All to Make America Great Again (MAGA), as Trump repeats ad nauseum. But even his best friend, billionaire Elon Musk, became disgruntled with him. Musk stepped down from his formal advisory role, ending his tenure with the Department of Government Efficiency. Just before leaving, he had criticized one of Trump’s key policies — the so-called “big beautiful bill.” Musk publicly called it a “massive spending bill” that added to the federal deficit.

Does Trump make the ordinary American happy? Following Trump’s announcement of higher tariffs for imports, US research group Yale Budget Lab estimated consumers face an effective US tariff rate of 17.6%, up from 15.8% previously and the highest in nine decades.

“Seven in 10 Americans think President Donald Trump’s tariffs on international trade will drive up US inflation… fueling a 64% disapproval rate of how he’s handling the issue. Even nearly half of Republicans — 47% in the ABC News/Washington Post/Ipsos poll — said they think tariffs will negatively impact inflation. That jumps to 75% among independents… Democrats… are roundly opposed to the tariffs” (abcnews.go.com on April 26).

Donald Trump has the lowest 100-day job approval rating of any president in the past 80 years, with public pushback on many of his policies and extensive economic discontent, including broad fears of a recession, according to the ABC News/Washington Post/Ipsos poll.

Trump has set the world spinning like a giddy top jerked free from its string. “Trade Wars are good,” he said, even way back in his first term as president in 2017-2021. “For decades, the US was the biggest driving force behind moves to stimulate more international trade. Now it’s the most important sceptic,” the BBC pointed out in January 2018.

On his Truth Social media platform, Trump has issued tariff notices to seven minor trading partners that exported only $15 billion in goods to the US last year: a 20% tariff on goods from the Philippines, 30% on Sri Lanka, Algeria, Iraq, and Libya, and 25% on Brunei and Moldova. This is in addition to 14 others issued earlier in the week including letters setting 25% tariffs on powerhouse US suppliers South Korea and Japan, which are also to take effect Aug. 1 — barring any trade deals reached before then, Reuters reported on July 10.

“I always say ‘tariffs’ is the most beautiful word to me in the dictionary,” he said at a rally just hours after his inauguration in January. “Because tariffs are going to make us (America) rich as hell. It’s going to bring our country’s businesses back that left us” (Economic Times, April 15).

He raised tariffs on China to 145%. “If the US insists on continuing to substantially infringe on China’s interests, China will resolutely counter and fight to the end,” a Chinese Finance Ministry spokesman said, as he announced that China would raise tariffs on US goods from 84% to 125%, according to AP in April. That’s a trade/tariff war.

“There are no winners in a tariff war,” Chinese leader Xi Jinping said during a meeting with the Spanish Prime Minister Pedro Sanchez.  China has until Aug. 13 to “negotiate.”

When the two richest countries in the world fight, the rest of the world cannot help but be drawn into a fight for their survival. Countries around the world have until Aug. 1 to strike a deal with the US. But they are likely wondering about their chances given that Japan, a staunch ally that has been openly pursuing a deal, is still facing a steep 25% on Japanese goods. Vietnam was the first country in Asia to strike a deal, is now facing levies up to 40%. The same goes for Cambodia. A poor country heavily reliant on exports, it has been negotiating a deal as Trump threatens 35% tariffs, according to the BBC.

In separate July 9 letters, Trump said he would impose 30% tariff rates on imports from Libya, Sri Lanka, Iraq, and Algeria. He said Moldova and Brunei would face 25% tariffs, while the Philippines would be hit with a 20% rate. In letters addressed to leaders of the countries he’s targeting, Trump has said, “If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto” the amount the United States plans to charge.  Is that “negotiation”?

In his letter to President Ferdinand “Bongbong” Marcos, Jr., Trump informed him that, “We will charge the Philippines a tariff of only 20% on any and all Philippine products sent into the United States, separate from all Sectoral Tariffs.” Trump’s decision to increase the reciprocal tariff rate for Philippine goods by three percentage points from the 17% originally announced came as a surprise as since May Philippine investment ministers have repeatedly expressed confidence in a favorable outcome of the negotiations with their American counterparts.

“The Philippines does not run a massive trade surplus with the United States… In 2024, Philippine exports to the US totaled around $14 billion, consisting largely of electronics, semiconductors, garments, and agricultural goods like bananas and canned tuna. In return, the country imported over $9 billion worth of American goods: aircraft parts, soybeans, corn, machinery, and consumer products. The trade imbalance is around $5 billion in the Philippines’ favor,” Rappler reported.

“(But) if the Philippines and other countries retaliate with countermeasures such as tariffs on US goods or restrictions on market access, it could escalate into a full-scale trade war. This could disrupt global supply chains, especially in sectors like electronics and intermediate goods, where Philippine exports are deeply embedded in multinational production networks. A prolonged trade war would deter foreign investment, weaken global demand, and put pressure on Philippine households and businesses through higher prices. Trade disputes also have a way of spilling over into diplomatic relations, meaning the Philippines must tread carefully to protect its long-term interests,” an analysis by the UP center for Integrative and Development Studies in March advised.

 

Amelia H. C. Ylagan is a doctor of Business Administration from the University of the Philippines.

ahcylagan@yahoo.com

Honda Cars Fairview hosts HCP’s 24th anniversary bash, ‘graduation’ rites

Honda Club of the Philippines (HCP) members pose during the 24th anniversary party held at Honda Cars Fairview. — PHOTO FROM HONDA CARS FAIRVIEW

The Honda Club of the Philippines (HCP) celebrated a milestone anniversary last month, marking 24 years with a reunion of its members at the Honda Cars Fairview dealership. The club also held its annual “graduation” ceremony, where aspiring HCP members became bona fide members of HCP.

While previous HCP graduations consisted of a group and solo dance number in front of an audience of HCP members, a new element was added for this year’s graduation: a theme. For 2025, the theme was “June Bride,” where applicants were required to model their gowns on stage, to the delight of over a hundred HCP members and their families. In all, 31 new graduates became bona fide HCP members that day — 11 from the EK Elites subgroup.

Honda Club Philippines is among a handful of Philippine car clubs supported by the brand. Apart from providing a venue for the graduation, key officers from Honda Cars Philippines, Inc. (HCPI) were on hand to congratulate the graduates and connect with Honda owners in attendance, including HCPI President Rie Miyake, HCPI SVP Atty. Louie Soriano, HCPI General Manager for Sales Division Aizza Flores, and HCPI Department Manager for Communications Rex Decena. Also present was Honda Cars Fairview GM Rachelle Marie Diyco.

“This isn’t just an event; it’s a meaningful gathering of kindred spirits who share a deep appreciation for the Honda brand. We’re truly excited to open our doors to the HCP community, welcome you into our home, and celebrate this remarkable milestone together,” said Ms. Diyco.

Added HCP President Charles Dy Cabrera: “Aside from becoming a part of one of the OG car club in the country, a bona member is qualified to join exclusive events and activities of the club, receive discounts and benefits from Honda dealerships and partner shops, and of course interact with different Honda groups within HCP. After all, HCP is not just a car club that focuses on cars, it fosters well-being development and family bonding.”

With a showroom big enough for eight vehicles, and a service area with 30 work bays, Honda Cars Fairview is among the largest Honda dealerships in the country. “More than our size, it’s the experience that sets us apart,” Ms. Diyco shared. “We’ve thoughtfully created spaces to make every visit enjoyable and worthwhile — whether you’re relaxing at the coffee bar, watching your kids play in the kiddie corner, enjoying our gaming lounge, taking photos by our mural wall, or exploring our Honda history wall and Tomica model car collection.”

Under Gateway Group management, Honda Fairview was awarded Dealer of the Year in 2021, and continued its streak as second runner-up in 2022, and first runner-up in 2023.

LRTA revenue up 3% as more ride LRT-2

PHILIPPINE STAR/MIGUEL DE GUZMAN

THE LIGHT RAIL Transit Authority (LRTA), operator of Light Rail Transit Line 2 (LRT-2), saw its gross revenue collection for the first half rise by 3.02% to P641.17 million, driven by higher passenger volume during the period.

For the January-to-June period, LRT-2 recorded a total passenger volume of 27.54 million, up 6.37% from 25.89 million in the same period last year, data from LRTA showed.

For the second quarter, LRTA posted gross revenue of P288.96 million, lower by 4.27% compared with the P301.85 million recorded in the same period a year ago, despite higher passenger traffic.

LRTA logged a total of 13.19 million passengers for the April-to-June period, marking a 5.02% increase from 12.56 million a year earlier.

For the first quarter, LRTA’s gross revenue rose by 9.89% to P352.22 million from P320.53 million a year ago.

For 2025, LRTA is projecting revenue of P1.38 billion.

It also expects passenger volume to reach 57.15 million this year.

If realized, this would exceed its pre-pandemic passenger count of 56.98 million in 2019.

Last year, LRTA’s gross revenue from rail operations stood at P1.27 billion, up 15.5% and surpassing its P1.2-billion target. — Ashley Erika O. Jose

Peso to move sideways amid fresh tariff wave

BW FILE PHOTO

THE PESO could trade sideways against the dollar this week as the market remains cautious  after the Trump administration announced new tariffs over the weekend.

The local unit closed unchanged at P56.47 per dollar on Friday, Bankers Association of the Philippines data showed.

Meanwhile, week on week, the peso weakened by seven centavos from its P56.40 per dollar close on July 4.

The peso was flat against the dollar on Friday as “mixed external signals, stable remittances, and inward FDIs (foreign direct investments) offered support, while geopolitical risks and US rate expectations capped gains,” Philippine Institute for Development Studies Senior Research Fellow John Paolo R. Rivera said in a Viber message.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the peso was also supported by the government’s plans to negotiate with the United States about the 20% tariffs set to be imposed on Philippine goods by next month.

“For this week, key factors to watch include US inflation data, Fed guidance, and local trade and fiscal developments,” Mr. Rivera said.

He said the peso could trade within the P56.50 to P57.50 range this week “if risk sentiment remains stable.”

Meanwhile, Mr. Ricafort sees the local unit moving between P56.25 and P56.75 versus the greenback in the coming days.

“The markets are still on wait-and-see mode if Trump would be willing to compromise and settle for lower negotiated tariffs during the trade negotiations, given the TACO (Trump Always Chickens Out) track record in recent months,” he said.

The peso could stay range-bound against the dollar in the short term as markets await clarity regarding the US’ planned “reciprocal” tariff rate, analysts said.

“The peso may find some support from relatively stable macroeconomic fundamentals, resilient remittances from OFWs (overseas Filipino workers) and BPOs/KPOs (business and knowledge process outsourcing), and the fact that the Philippines’ tariff rate is still in line with or lower than that of regional peers,” Mr. Rivera said.

“This may help anchor investor sentiment, especially if the government acts quickly to diversify exports and clarify trade policy direction.”

However, the 20% rate and its impact on export revenues, especially from the electronics and garments sectors, could cause the Philippines’ current account deficit (CAD) to widen in the short term, which could hit the local currency, Mr. Rivera added.

“Lower US dollar inflows from trade may weigh on the peso, adding modest depreciation pressure.”

The Philippines’ current account deficit, which covers transactions involving goods, services and income, widened by 105% to $4.25 billion in the first quarter from $2.07 billion in the same period a year ago.

This brought the CAD as a share of gross domestic product (GDP) to 3.7% in the January-to-March period, larger than the 1.9% in the same quarter in 2024.

The Bangko Sentral ng Pilipinas expects the current account deficit to narrow to $16.3 billion or -3.3% of GDP this year from the $17.5-billion gap (-3.8% of GDP) in 2024.

ANZ Research said in a research note on Friday that while current account balances of Southeast Asian countries have mostly stabilized, investments as a share of GDP have declined in the Philippines, Malaysia, and Thailand compared to pre-pandemic averages, which implies a sharp fall in savings.

“This is especially worrying for the Philippines as it runs a current account deficit, which has widened in recent years amid stagnating investments. This suggests that it is increasingly relying on foreign capital to fund domestic consumption rather than productive investments,” it said.

“Savings have remained constrained in the region as high inflation in recent years has led to low real income growth. Although inflation has subsided, wages have not grown sufficiently to offset the impact of higher price levels. This is evident in the Philippines where household savings is structurally low, driven by a large informal sector, low incomes, and limited access to formal saving instruments,” ANZ Research added.

It noted that household savings in the Philippines only returned to the pre-pandemic level last year, with the recent surge in credit card loans also pointing to “higher stress” among households.

“With limited social safety nets, households depleted savings to fulfil their daily needs… Moreover, given the already high household debt, savings are likely to remain constrained in the near term.”

ANZ Research expects the Philippines’ CAD to end this year at 3.6% of GDP, adding that current account positions among Southeast Asian countries are unlikely to improve materially in the coming years, especially amid shifting global trade dynamics.

“Gross savings will remain subdued amid slowing wage growth and moderating economic activity. Lower savings are at best expected to be offset by moderating investments given the ongoing trade policy uncertainty,” it said.

Meanwhile, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said in a Viber message that investors will likely monitor the impact of potentially higher tariffs on consumers, “but any possible short-term to medium-term adverse effects could be offset later by other trade partners or new bilateral concessions.” — A.M.C. Sy

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