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US appeals court temporarily upholds protected status for Afghans

STOCK PHOTO | Image by Sergei Tokmakov, Esq. https://Terms.Law from Pixabay

WASHINGTON – A U.S. appeals court has blocked for now a bid by President Donald Trump’s administration to strip temporary protected status from thousands of Afghans in the United States, court documents showed, allowing them more time to argue the case.

Monday’s order by the U.S. Court of Appeals for the Fourth Circuit granted an administrative stay on the termination until July 21, following a request from immigration advocacy organization CASA.

The group’s lawsuit against the U.S. Department of Homeland Security challenged the termination of temporary protected status for Afghans and Cameroonians unveiled by the administration in April.

The DHS did not immediately respond to a request for comment. At the time of the April announcement, it had said conditions in Afghanistan and Cameroon no longer merited the protected status.

The TPS program provides protection against deportation and provides work permits for periods of six to 18 months to those from countries stricken by natural disaster, armed conflict or other extraordinary event.

The status can be renewed by the homeland security secretary. Mr. Trump’s effort to end most TPS enrollment during his first term from 2017 to 2021 was thwarted by federal courts.

CASA sought an emergency stay on Monday, when the protection of Afghans was set to be terminated, while that of Cameroonians was set to end on August 4, the court document showed.

The group said the step was arbitrary and discriminatory and would cause “irreparable harm” to those affected, as it sought a stay while the appeals proceed.

The administration has time until 11:59 p.m. ET on Wednesday (0359 GMT on Thursday) to respond.

The stay was not a final decision, but gave time for the legal challenge, said Shawn VanDiver, founder of AfghanEvac, the main coalition of veterans and advocacy groups that coordinates resettlements with the government.

“AfghanEvac stands firmly behind the legal challenge and calls on DHS and the Trump administration to immediately reverse course and extend TPS protections,” Mr. VanDiver said in an email.

The United States evacuated more than 82,000 Afghans from Afghanistan after the Taliban takeover in 2021, of whom more than 70,000 entered the U.S. on temporary “parole,” or legal entry for two years.

Rights advocates have said many Afghans who helped the United States during its war in Afghanistan would be targets of the Taliban if they returned home.

Particularly at risk would be women, whose rights the Taliban have curbed since their return to power after the U.S. withdrawal, rights groups say. – Reuters

US imposes 17% tariff on Mexican tomatoes after withdrawing from agreement

STOCK PHOTO | Image by Myriams-Fotos from Pixabay

WASHINGTON – The Trump administration announced on Monday a duty of about 17% on fresh tomatoes from Mexico, which account for two-thirds of the tomatoes eaten in the U.S., and the end of an export deal between the two countries.

The Commerce Department said the U.S. was withdrawing from a 2019 agreement with Mexico that suspended an antidumping duty investigation on Mexican tomatoes, whose exports to the U.S. are valued at $3 billion a year.

The move came as President Donald Trump‘s administration seeks to negotiate comprehensive trade agreements with virtually every trading partner after the president launched a dizzying series of tariff announcements in April.

The U.S. and Mexico first struck an agreement in 1996 to regulate Mexican tomato exports and address U.S. complaints of unfair competition. The pact was last renewed six years ago to avert an antidumping investigation and end a tariff dispute.

Mexico said in April it was confident that it could renew the tomato agreement when Washington said it intended to withdraw from the deal.

The 17.09% antidumping duty is set at the percentage by which exported Mexican tomatoes have been unfairly underpriced in the United States, it said.

“For far too long our farmers have been crushed by unfair trade practices that undercut pricing on produce like tomatoes,” U.S. Commerce Secretary Howard Lutnick said.

Mexico’s ministries of economy and agriculture said in a joint statement the U.S. decision was “unfair” and against the interests of Mexican producers and the U.S. industry.

The government said it would help local tomato producers seek a deal to suspend the tomato duty as well as support them in seeking new international markets.

Mexican tomato growers had offered proposals that were positive for the U.S., but were rejected for “political reasons,” the statement added.

A group of five Mexican agriculture associations, including from Baja California and Sinaloa states, said they were committed to working with the Mexican government to find solutions.

“There are no countries in the world that can replace Mexican tomatoes in a market we have built through innovation and effort over the past 120 years,” they said in a statement.

 

HIGHER PRICES EXPECTED

Before Monday’s announcement, some experts, as well as Mr. Trump’s opponents from the Democratic Party, warned that prices of tomato products would rise.

“Salsa will be pricier, shelves emptier, and groceries more expensive,” U.S. Representative Sylvia Garcia said on X on Friday.

Mr. Trump on Saturday separately threatened a 30% tariff on Mexican imports starting August 1 after weeks of negotiations with the country failed to reach a comprehensive trade deal.

U.S. growers have long sought protections from Mexican competitors who can often grow the fruits year round.

The 2019 agreement was supposed to set a floor on pricing and provided for U.S. border inspections of crops. But U.S. growers have long argued that the arrangement had too many loopholes that allowed for dumping of Mexican fruits.

“This decision will protect hardworking American tomato growers from unfair Mexican trading practices and send a strong signal that the Trump Administration is committed to ensuring fair markets for American agriculture,” Robert Guenther, an official with the Florida Tomato Exchange, which represents growers there. – Reuters

Astronauts from India, Poland, Hungary depart space station for return flight

STOCK PHOTO | Image by Arek Socha from Pixabay

LOS ANGELES – NASA retiree turned private astronaut Peggy Whitson and three crewmates from India, Poland and Hungary departed the International Space Station early on Monday and embarked on their return flight to Earth.

A Crew Dragon capsule carrying the quartet undocked from the orbital laboratory at 7:15 a.m. EDT (1115 GMT), ending the latest ISS visit organized by Texas-based startup Axiom Space in partnership with Elon Musk’s California-headquartered rocket venture SpaceX.

The Axiom astronauts, garbed in their helmeted white-and-black flight suits, were seen in live video footage strapped into the crew cabin shortly before the vehicle separated from the station, orbiting some 260 miles (418 km) over the east coast of India.

A couple of brief rocket thrusts then pushed the capsule safely clear of the ISS.

Whitson, 65, and her three Axiom crewmates – Shubhanshu Shukla, 39, of India, Sławosz Uznański-Wiśniewski, 41, of Poland, and Tibor Kapu, 33, of Hungary – spent 18 days aboard the space station conducting dozens of research experiments in microgravity.

The mission stands as the fourth such flight since 2022 arranged by Axiom as the Houston-headquartered company builds on its business of putting astronauts sponsored by private companies and foreign governments into low-Earth orbit.

For India, Poland and Hungary, the launch marked the first human spaceflight in more than 40 years and the first mission ever to send astronauts from their government’s respective space programs to the ISS.

If all goes as planned, the Dragon capsule will re-enter Earth’s atmosphere at the end of a 22-hour return flight and parachute into the Pacific Ocean off the coast of California on Tuesday around 5:30 a.m. EDT (0930 GMT).

Dubbed “Grace” by its crew, the newly commissioned capsule flown for Axiom-4 was launched from NASA’s Kennedy Space Center in Cape Canaveral in Florida on June 25, making its debut as the fifth vehicle in SpaceX’s Crew Dragon fleet.

Axiom-4 also marks the 18th crewed spaceflight logged by SpaceX since 2020, when Musk’s rocket company ushered in a new NASA era by providing American astronauts their first rides to space from U.S. soil since the end of the space shuttle program nine years earlier.

The Ax-4 multinational team was led by Whitson, who retired from NASA in 2018 after a pioneering career that included becoming the U.S. space agency’s first female chief astronaut and the first woman to command an ISS expedition.

Now director of human spaceflight for Axiom, she had logged 675 days in space, a U.S. record, during three previous NASA missions and a fourth flight to space as commander of the Axiom-2 crew in 2023. Her latest mission commanding Axiom-4 will extend her record by about three more weeks.

Axiom, a 9-year-old venture co-founded by NASA’s former ISS program manager, is one of a handful of companies developing a commercial space station of its own intended to eventually replace the ISS, which NASA expects to retire around 2030. – Reuters

US opens national security probes into imported drones, polysilicon

STOCK PHOTO | Image by JackieLou DL from Pixabay

WASHINGTON – The U.S. Commerce Department said on Monday it has opened national security investigations into the import of drones and related components as well as polysilicon, a key component in solar panels and semiconductors.

The “Section 232” investigations, which were opened on July 1 but not publicly disclosed previously, could be used as a basis for even higher tariffs on imported drones and polysilicon and its derivatives.

The Trump administration has already opened numerous national security investigations, including into the import of commercial aircraft, jet engines and parts, medium-duty and heavy-duty trucks and related parts, semiconductors and pharmaceuticals.

China accounts for the vast majority of U.S. commercial drone sales. Washington has increasingly cracked down on Chinese drones over the last few years. DJI, the world’s largest drone manufacturer, sells more than half of all U.S. commercial drones.

In December, then-President Joe Biden signed legislation that could eventually ban DJI and Autel from selling new drone models in the United States.

In January, the Commerce Department under Mr. Biden said it was considering rules to restrict or ban Chinese drones in the U.S., citing national security concerns.

President Donald Trump signed an executive order last month aimed at boosting the U.S. drone industry.

The Association for Uncrewed Vehicle Systems International said it supported the drone probe that will review supply chain concentration, domestic production capacity, and the role of foreign subsidies and pricing practices.

“The dependence on adversary-manufactured systems that are dumped in the U.S. below market value due to foreign government subsidies has also stifled the growth of a secure American drone industrial base, undercutting innovation, and forcing U.S. manufacturers to compete on an uneven playing field,” said AUVSI CEO Michael Robbins. – Reuters

China’s economy set to slow in Q2 as pressure from US tariffs mounts

STOCK PHOTO | Image by 立 重立 from Pixabay

BEIJING – China’s economy is likely to have cooled in the second quarter after a solid start to the year, as trade tensions and a prolonged property downturn drag on demand, raising pressure on policymakers to roll out additional stimulus to underpin growth.

The world’s No. 2 economy has so far avoided a sharp slowdown in part due to a fragile U.S.-China trade truce and policy support, but markets are bracing for a weaker second half as exports lose momentum, prices continue to fall, and consumer confidence remains low.

Data due Tuesday is expected to show gross domestic product (GDP) grew 5.1% year-on-year in April–June, slowing from 5.4% in the first quarter, according to a Reuters poll. The projected pace would still exceed the 4.7% forecast in a Reuters poll in April and remains broadly in line with the official full-year target of around 5%.

“While growth has been resilient year-to-date, we still expect it to soften in the second half of the year, due to the payback of front-loaded exports, ongoing negative deflationary feedback loop, and the impact of tariffs on direct exports to the U.S. and the global trade cycle,” analysts at Morgan Stanley said in a note.

“The third-quarter growth could slow to 4.5% or lower, while Q4 faces unfavorable base effect, putting the annual growth target at risk,” the analysts said. They expect Beijing to introduce a 0.5–1 trillion yuan ($69.7 billion-$139.5 billion) supplementary budget from late in the third quarter.

China’s exports regained some momentum in June while imports rebounded, as factories rushed out shipments to capitalize on a fragile tariff truce between Beijing and Washington ahead of a looming August deadline.

GDP data is due on Tuesday at 0200 GMT. Separate data on June activity is expected to show both industrial output and retail sales slowing.

On a quarterly basis, the economy is forecast to have expanded 0.9% in the second quarter, slowing from 1.2% in January-March, the poll showed.

China’s 2025 GDP growth is forecast to cool to 4.6% – falling short of the official goal – from last year’s 5.0% and ease even further to 4.2% in 2026, according to the poll.

 

BALANCING ACT

Investors are closely watching for signs of fresh stimulus at the upcoming Politburo meeting due in late July, which is likely to shape economic policy for the remainder of the year.

Analysts polled by Reuters expect a 10-basis point cut in the seven-day reverse repo rate – the central bank’s key policy rate – in the fourth quarter, along with a similar cut to the benchmark loan prime rate (LPR).

Beijing has ramped up infrastructure spending and consumer subsidies, alongside steady monetary easing. In May, the central bank cut interest rates and injected liquidity as part of broader efforts to cushion the economy from U.S. President Donald Trump’s trade tariffs.

But China observers and analysts say stimulus alone may not be enough to tackle entrenched deflationary pressures, with producer prices in June falling at their fastest pace in nearly two years.

Expectations are growing that China could accelerate supply-side reforms to curb excess industrial capacity and find new ways to boost domestic demand.

It’s a stiff challenge, analysts say, as Chinese leaders face a delicate balancing act in their quest to cut production while maintaining employment stability in the face of a worsening labor market outlook. – Reuters

In reversal, Trump arms Ukraine and threatens sanctions on countries that buy Russian oil

REUTERS

KYIV/WASHINGTON – U.S. President Donald Trump announced new weapons for Ukraine on Monday, and threatened sanctions on buyers of Russian exports unless Russia agrees a peace deal, a major policy shift brought on by frustration with Moscow’s ongoing attacks on its neighbor.

But Mr. Trump’s threat of sanctions came with a 50-day grace period, a move that was welcomed by investors in Russia where the rouble recovered from earlier losses and stock markets rose.

Sitting with NATO Secretary General Mark Rutte in the Oval Office, Mr. Trump told reporters he was disappointed in Russian President Vladimir Putin and that billions of dollars of U.S. weapons would go to Ukraine.

“We’re going to make top-of-the-line weapons, and they’ll be sent to NATO,” Mr. Trump said, adding that Washington’s NATO allies would pay for them.

The weapons would include Patriot air defense missiles Ukraine has urgently sought, he said.

“It’s a full complement with the batteries,” Mr. Trump said. “We’re going to have some come very soon, within days.”

“We have one country that has 17 Patriots getting ready to be shipped … we’re going to work a deal where the 17 will go or a big portion of the 17 will go to the war site.”

Mr. Rutte said Germany, Finland, Denmark, Sweden, Norway, the United Kingdom, the Netherlands and Canada all wanted to be a part of rearming Ukraine.

Mr. Trump’s threat to impose so-called secondary sanctions on Russia, if carried out, would be a major shift in Western sanctions policy. Lawmakers from both U.S. political parties are pushing for a bill that would authorize such measures, targeting other countries that buy Russian oil.

Throughout the more than three-year-old war, Western countries have cut most of their own financial ties to Moscow, but have held back from taking steps that would restrict Russia from selling its oil elsewhere. That has allowed Moscow to continue earning hundreds of billions of dollars from shipping oil to buyers such as China and India.

“We’re going to be doing secondary tariffs,” Mr. Trump said. “If we don’t have a deal in 50 days, it’s very simple, and they’ll be at 100%.”

A White House official said Mr. Trump was referring to 100% tariffs on Russian goods as well as secondary sanctions on other countries that buy its exports. Eighty-five of the 100 U.S. senators are co-sponsoring a bill that would give Trump the authority to impose 500% tariffs on any country that helps Russia, but the chamber’s Republican leaders have been waiting for Trump to give them the go-ahead for a vote.

Ukrainian President Volodymyr Zelenskiy said on Telegram he had spoken to Mr. Trump and “thanked him for his readiness to support Ukraine and to continue working together to stop the killings and establish a lasting and just peace.”

Mr. Zelenskiy held talks with Mr. Trump’s envoy Keith Kellogg on Monday.

In Kyiv, people welcomed Mr. Trump’s announcement but some were cautious about his intentions.

“I am pleased that finally European politicians, with their patience and convictions, have slightly swayed him (Trump) to our side, because from the very beginning it was clear that he did not really want to help us,” said Denys Podilchuk, a 39-year-old dentist in Kyiv.

 

GRACE PERIOD

Artyom Nikolayev, an analyst from financial information firm Invest Era, said Mr. Trump did not go as far as Russian markets had feared.

“Trump performed below market expectations. He gave 50 days during which the Russian leadership can come up with something and extend the negotiation track. Moreover, Trump likes to postpone and extend such deadlines,” he said.

Asked about Mr. Trump’s remarks, U.N. Secretary-General Antonio Guterres said an immediate ceasefire was needed to pave the way for a political solution and “whatever can contribute to these objectives will, of course, be important if it is done in line with international law.”

Since returning to the White House promising a quick end to the war, Mr. Trump has sought rapprochement with Moscow, speaking several times with Mr. Putin. His administration has pulled back from pro-Ukrainian policies such as backing Kyiv’s membership in NATO and demanding Russia withdraw from all Ukrainian territory.

But Mr. Putin has yet to accept a proposal from Mr. Trump for an unconditional ceasefire, which was quickly endorsed by Kyiv. Recent days have seen Russia use hundreds of drones to attack Ukrainian cities.

Mr. Trump said his shift was motivated by frustration with Mr. Putin.

“We actually had probably four times a deal. And then the deal wouldn’t happen because bombs would be thrown out that night and you’d say we’re not making any deals,” he said.

Last week he said, “We get a lot of bullshit thrown at us by Putin.”

Russia began its full-scale invasion of Ukraine in February 2022 and holds about one-fifth of Ukraine. Its forces are slowly advancing in eastern Ukraine and Moscow shows no sign of abandoning its main war goals.

Evelyn Farkas, a former senior Pentagon official who is now executive director of the McCain Institute, said Mr. Trump’s moves could eventually turn the tide of the war if Mr. Trump ratchets up enforcement of current sanctions, adds new ones and provides new equipment quickly.

“If Putin’s ministers and generals can be convinced that the war is not winnable they may be willing to push Putin to negotiate, if nothing else but to buy time,” said Ms. Farkas. – Reuters

European ports slow to install shore power ahead of 2030 deadline, study shows

STOCK PHOTO | Image by Bruno from Pixabay

Most European ports are lagging in installing the shore-side electrical infrastructure needed for ships to switch from highly polluting marine fuel to cleaner electricity while docked, a new study showed on Tuesday.

European Union environmental rules have set a 2030 deadline for maritime ports to install the infrastructure to provide what is known as onshore power supply (OPS).

To assess their roll-out, Brussels-based NGO Transport & Environment (T&E) commissioned a study covering 31 European ports.

Findings show that just one in five of the required power supply connections have been installed or contracted so far, with slow uptake across most ports. Of the ports analyzed, only four have installed or contracted more than half of the connections needed ahead of the 2030 deadline.

Residents living near ports hope the plug-in infrastructure can take some of the pain out of sharing their cities with cruise ships, which often leave their engines running in ports to power onboard amenities including lighting and air conditioning.

Pollution from marine fuels includes sulfur dioxide, nitrogen oxides and harmful particulate matter as well as carbon emissions.

The study also highlights significant disparities between ship types. While 38% of the required OPS connections for cruise and passenger ships are in place, container vessels are notably underserved, with only 11% of the needed 294 connections installed or contracted.

“Given their regular and predictable routes and the proximity of cruise passenger terminals to busy city centers, cruise ships should be prioritized for earlier OPS deployment and uptake,” the study said.

The ports of Antwerp, Dublin, Gdansk, and Lisbon are among those that have yet to make an investment in electric plug-in infrastructure, according to T&E.

In Lisbon, one of Europe’s busiest cruise ports, a multi-million-euro project to lay cables to connect the port to a power station is set to be ready by 2029, according to the Portuguese government. – Reuters

DigiPlus, BingoPlus Foundation pledge P2 million for tech scholarships, expand FutureSmart with Edukasyon.ph

The ceremonial Memorandum of Agreement attended by remarkable executives from each organizations namely (from left to right) Phoebe Fontanilla and Ken Ngo, board members of Edukasyon.ph; Angela Camins-Wieneke, executive director of BingoPlus Foundation; Celeste Jovenir, DigiPlus' VP for Investor Relations, Corporate Communication, and Sustainability and BPF COO; Precious Lim, country manager of AWS Philippines; and Rajas Karandikar, head of Greenfield for AWS ASEAN

DigiPlus Interactive Corp., through its social development arm BingoPlus Foundation, has pledged P2 million to fund scholarships for 50 aspiring tech professionals under its flagship FutureSmart Program. This fresh investment comes with a new partnership with Edukasyon.ph to bridge technology education and real-world careers for Filipinos.

The ceremonial Memorandum of Agreement (MoA) signing was held on May 26, 2025, at AWS Philippines in Bonifacio Global City, Taguig City. The event brought together leaders from DigiPlus, BingoPlus Foundation, Edukasyon.ph, and Amazon Web Services (AWS), all committed to equipping young Filipinos with in-demand cloud and tech skills that lead directly to employment.

As part of this partnership, selected scholars will complete the AWS re/Start program, a 12-week workforce development training that prepares learners for entry-level cloud careers. After training, Edukasyon.ph will provide job placement support to help graduates land employment within three months, with opportunities available within DigiPlus and its extensive network of tech industry partners.

This initiative aligns with DigiPlus and BingoPlus Foundation’s mission to multiply opportunities for Filipinos to thrive in the digital economy. The FutureSmart Program has already impacted over 5,000 students and teachers nationwide through scholarships, technology training, learning center donations, and job pathways.

Earlier this year, FutureSmart received a Gold Stevie Award for Excellence in Social Impact at the 2025 Asia-Pacific Stevie Awards in Seoul, a testament to the program’s tangible impact and the value of strategic partnerships in expanding access to technology education across the Philippines.

As demand for digital skills continues to rise, DigiPlus and BingoPlus Foundation remain committed to investing in future-ready education and inclusive employment opportunities. Through FutureSmart, the Foundation aims to build a workforce that is not only skilled but empowered to help shape the country’s digital future.

Ready to Launch a Career in Tech?

BingoPlus Foundation and Edukasyon.ph are now accepting applications for the AWS Cloud Skills Training Program. IT and Computer Science experience is required, only the drive to learn and grow in the tech industry. Participants will gain knowledge in Amazon Web Services (AWS), earn certifications, and open doors to career opportunities in cloud technology. Whether you’re aiming to become a cloud engineer, IT specialist, or digital entrepreneur, this program is your stepping stone.

Apply now through this link: https://tinyurl.com/AWSTrainingApplication.

 

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30 manufacturing projects in the works

WORKERS paint the fur of realistic pet plushies at a factory in Angeles City, Pampanga, March 10, 2023. — REUTERS/LISA MARIE DAVID

By Justine Irish D. Tabile, Reporter

THE Board of Investments (BoI) said that it is currently evaluating applications for 30 manufacturing projects which have a total cost of P33.54 billion.

BoI Investment Policy and Planning Service Director Sandra Marie S. Recolizado said the application forms and supporting documents for the 30 manufacturing projects have already been filed with the BoI.

“So, the projects really have the intention to apply if they are already in the checklisting phase,” she said in a Viber message.

During the “checklisting” phase, the BoI assesses the completeness of information in the application forms and supporting documents that have been submitted.

Data from the BoI as of July 14 showed that it is currently evaluating the 30 projects under the manufacturing industry. The projects are expected to generate 1,668 jobs.

From January to June, the BoI has already approved 14 manufacturing projects that have a combined project cost of P26.63 billion, reflecting a 165.08% increase from the P10.05 billion worth of manufacturing projects it approved in the same period last year.

The 14 manufacturing projects approved in the first half are expected to generate 5,725 jobs.

“The sustained rise in industrial production, coupled with increasing investor confidence, is laying the groundwork for significant employment opportunities for Filipinos,” said Trade Secretary and BoI Chairperson Ma. Cristina A. Roque in a statement on Monday.

Citing data from the Philippine Statistics Authority, the BoI said that the Philippine manufacturing sector’s output grew by 4.9% in May, signaling “robust economic activity and boosting job opportunities.”

“The surge in manufacturing output in the Philippines shows how we are taking advantage of opportunities to serve growing markets and, importantly, to provide jobs and income for our people,” said Ms. Roque.

Year on year, manufacturing output, measured by the volume of production index, climbed to 4.9% in May, faster than 4.2% in the same month last year and 4.3% in April.

It was also the quickest growth in 10 months, or since the 7.2% in July 2024.

“The growth in May was primarily driven by a 15.7% jump in the food products subsector, which accelerated from its 11.2% rise in April,” the BoI said.

“The manufacture of transport equipment also provided a major boost, with output increasing by 13.5%, nearly doubling the 7.4% growth recorded in the previous month,” it added.

The agency also noted the S&P Global Philippines Manufacturing Purchasing Managers’ Index  improved to 50.7 in June from 50.1 in May.

“This positive outlook on the manufacturing sector is a catalyst for the country’s economic growth and more job opportunities for Filipinos. When factories produce more, they need to hire more workers,” said Ms. Roque.

Meanwhile, Rizal Commercial Banking Corp. (RCBC) Chief Economist Michael L. Ricafort said that he expects US President Donald J. Trump’s reciprocal tariffs to dampen exports, thereby also slowing down investments.

“As some investments are export-oriented, uncertainties in exporter sales, inventories, and capacity would slow down new investments until uncertainties ease,” said Mr. Ricafort.

However, he said this could be offset by the Philippines’ largely consumer-driven economy, where consumer spending accounts for 75%.

He said that the country’s favorable demographics and fast-growing economy make it a compelling destination for foreign investors “as a source of more organic sales.”

PHL banks fail to meet MSME lending quota in Q1

Stalls selling school uniforms are seen at Quiapo Market in Manila. — PHILIPPINE STAR/RYAN BALDEMOR

By Luisa Maria Jacinta C. Jocson, Senior Reporter

PHILIPPINE BANKS continued to miss the mandated lending quota for small businesses as of end-March, data from the Bangko Sentral ng Pilipinas (BSP) showed.

Loans granted by the banking system to micro, small and medium enterprises (MSMEs) amounted to P546.82 billion at end-March, equivalent to just 4.63% of their total loan portfolio of P11.82 trillion.

This fell short of the 10% overall requirement under the Magna Carta for MSMEs. Under the law, banks must allocate 8% of their loan portfolio to micro and small enterprises, and 2% to medium-sized businesses.

The law defines a microenterprise as a business with total assets not exceeding P3 million, while a small enterprise’s assets range from more than P3 million to P15 million, and a medium-sized enterprise’s assets would be over P15 million up to P100 million.

BSP data showed loans to micro and small enterprises amounted to P220.82 billion in the first quarter, accounting for just 1.87% of their total loan book. This was significantly below the 8% requirement.

Loans disbursed to medium enterprises reached P326 billion during the period. This accounted for 2.76% of their total portfolio, exceeding the 2% quota.

For years, most banks have opted to incur penalties for noncompliance with the lending quota instead of taking on the risks associated with lending to small businesses.

By type of bank, universal and commercial banks’ loans to micro and small enterprises stood at P138.85 billion at end-March, equivalent to 1.41% of their total loans worth P10.81 trillion.

Big banks granted P267.02 billion worth of loans to medium enterprises or 2.47% of the total.

Thrift banks extended loans worth P39.91 billion to micro and small enterprises, representing 3.85% of their P736.15-billion loan book. Credit to medium enterprises reached P38.67 billion or 5.33% of the thrift banks’ portfolio.

Only rural and cooperative banks met the overall MSME lending quota. They extended P41.53 billion in loans to MSEs or 16.18% of their P245.1-billion credit portfolio, and P20.26 billion to medium enterprises or 8.26%.

Digital banks’ loans to micro and small enterprises reached P540 million at end-March, accounting for 1.78% of their lending portfolio of P30.21 billion. They also lent P60 million to medium enterprises or just 0.2% of the total.

“The missed lending quota may be an indication of a pessimistic economic outlook by MSMEs which make them hesitant to borrow,” Reinielle Matt M. Erece, economist at Oikonomia Advisory and Research, Inc. said in a Viber message.

“In addition, financial inclusion may also need a boost as MSMEs, especially microenterprises, may be tempted to borrow more from informal channels for their accessibility,” he added.

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said the failure to meet the lending quotas was due to small business’ credit risk and the need for track record on borrowings.

“That is why it is also important to have credit information on the track record of borrowers,” he added.

Mr. Ricafort cited the need for more “credit-related information to manage asymmetric information on MSME borrowers, such as centralized borrower information.”

The BSP allowed banks to count MSME loans as alternative reserve compliance with the reserve requirements to help support the sector during the pandemic, but this relief measure expired in June 2023.

However, it was extended for thrift banks and rural and cooperative banks until Dec. 31, 2025.

Experts say Philippines now ‘back on the radar’ of Taiwanese firms

PEOPLE AND CARS can be seen passing Taipei 101 in Taipei, Taiwan, April 17, 2025. — REUTERS/ANN WANG

By Cathy Rose A. Garcia, Editor-in-Chief

TAIPEI — Taiwanese companies are looking to set up shop in the Philippines as the country faces a US tariff that is lower than most of its Southeast Asian neighbors, according to analysts.

This as Taiwan expects further deepening of ties with the Philippines, a Ministry of Foreign Affairs (MoFA) official said.

“We consider the Philippines as a very important partner for freedom, for democracy, for stability in the region,” MoFA Deputy Minister Francois Chichung Wu told visiting foreign journalists here last week.

Taiwan is also trying to work with the Philippines on “high-level projects,” he added.

The Philippines is emerging as a “top priority” for Taiwan in the region amid heightened tensions with China and uncertainty over the US tariffs, an analyst said.

Kristy Hsu, director of the Chung-Hua Institution for Economic Research’s (CIER) Taiwan ASEAN Studies Center, said the Taiwanese firms are taking notice of the Philippines because it currently faces one of the lowest US reciprocal tariffs in the region.

“I would say that Philippines right now is back on the radar (of Taiwanese firms),” she told visiting foreign journalists here last week.

US President Donald J. Trump last week announced it was raising the tariff on most Philippine goods entering the US to 20% from 17% previously. However, this is still lower than the 32% tariff that the US is looking to impose on Taiwan.

“I talked to someone who has an industrial park in the Philippines, and he told me just last week that he received a lot of requests from Taiwanese companies that have operations in Vietnam and other countries. They are very interested to probably open an office or open warehouses in the Philippines,” Ms. Hsu said.

While these Taiwanese firms are unlikely to close existing operations in Vietnam and China, there is a possibility that these firms will seek to de-risk their supply chains by expanding into other countries like the Philippines.

“Taiwanese companies will adjust their structure and probably they are seeing that the Philippines has its benefits, and they will start to allocate small part of their capacity to Philippines, depending on further policy development,” Ms. Hsu said.

A foreign affairs analyst noted that Taiwanese businesses are now figuring out a new route for their supply chains amid the US tariff uncertainty.

Shin-Horng Chen, research fellow and vice-president of CIER’s second research division, said it is difficult to predict what will happen with US tariffs because Mr. Trump is “changeable.”

“We used to think that when Taiwan was charged with high reciprocal tariffs, we may be able to mobilize our resources in Southeast Asia, even in Mexico, in the United States, to reduce certain impacts. But now quite a few Southeast Asian countries are facing high tariffs than expected,” Mr. Chen said at a separate briefing last week.

The US will impose a 20% tariff on Vietnamese exports, alongside a 40% duty on goods that are considered to have been transshipped.

Other Southeast Asian countries are also facing higher tariffs on goods sent to the US such as Laos (40%), Myanmar (40%), Cambodia (36%), Thailand (36%), Indonesia (32%), Malaysia (25%) and Brunei (25%).

Ms. Hsu said the US tariffs, once implemented on Aug. 1, will have a huge impact on the Taiwanese economy, as well as Southeast Asia.

“Everyone expected that Trump should have lower rates for Southeast Asian countries, especially those are the destination for friendshoring under the Biden administration, but right now they are going to be hit by the tariffs,” she said.

“If the tariffs for Southeast Asian countries remain high and that will also impact Taiwan a lot because we invested a lot in supply chain. We do see a possible shift of supply chain in Southeast Asian countries. But something is certain that is Taiwanese companies used to invest hugely in China are right now, they are already diversifying their supply chain,” she added.

LUZON ECONOMIC CORRIDOR
Meanwhile, an analyst said Taiwan could potentially join the Luzon Economic Corridor (LEC) project.

Taiwan’s government last year signaled its interest in participating in the Luzon Economic Corridor project, which is being undertaken via a trilateral commitment among the Philippines, US and Japan.

The project seeks to enhance the connectivity of Luzon’s key economic areas — Subic Bay, Clark, Metro Manila and Batangas. It is widely seen to counter China’s Belt and Road Initiative.

CIER’s Ms. Hsu said some Taiwanese firms are keen on the LEC project. “We have a lot of companies who are very interested in the Luzon Economic Corridor,” she said.

Some Taiwanese firms are also considering investments in the energy sector, she added.

“I would say that the Philippines right now is important not only because of the (lower tariff) rates but also because of its very strategic position for the US and also for Taiwan and Japan,” Ms. Hsu said.

The Philippines maintains a “One-China Policy,” but has ties with Taiwan with the Manila Economic and Cultural Office serving as a de facto embassy.

US tariffs to dampen PHL electronics export growth

The US flag and the word “tariffs” are seen in this illustration taken on April 4, 2025. — REUTERS/DADO RUVIC/ILLUSTRATION

THE SEMICONDUCTOR and Electronics Industries in the Philippines Foundation, Inc. (SEIPI) expects the 20% US tariff to dampen its optimistic projections this year.

SEIPI President Danilo C. Lachica said the group initially projected a flat growth to about $42.6 billion this year.

“But we have seen some upticks and that caused some optimism. In fact, personally, I thought we might hit the 2023 levels of $46 billion,” he said in an interview on Money Talks with Cathy Yang on One News.

“But, you know, these tariff developments have been disappointing, and that might temper our optimistic projections,” he added.

Despite the challenges, Mr. Lachica said he still expects a modest increase compared to the earlier export projection of $42.6 billion.

“Well, I’m an optimist, so I hope we’ll see some modest increase in that, but that remains to be seen. We’ll just pray for it and hope for successful negotiations,” he added.

Last week, US President Donald J. Trump imposed a 20% tariff on Philippine-made goods entering the US starting Aug. 1, higher than the 17% previously announced.

The new rate is the same as the rate on Vietnam, which secured a deal with the US.

Mr. Lachica said that the 20% rate is “disappointing” considering that the reciprocal tariffs were placed to minimize the US trade deficit.

“If you look at the trade deficit of the Philippines, which is about $6 to $8 billion, it is much, much less than Vietnam’s trade surplus,” he said.

“We’re probably 20 times less, and so it was really a surprising development to see that we’ve been bumped up to 20% and Vietnam lowered to 20%. So that creates major concerns,” he added.

Mr. Lachica said the previously announced 17% tariff gave the Philippines a competitive advantage over Vietnam which had a 46% tariff.

“And now we’re at the same level. And Vietnam is one of our biggest competitors, if you will, in terms of attracting foreign direct investments and even exports,” he said.

Despite the uncertainty, Mr. Lachica said some optimism remains for electronics and semiconductors’ export growth.

“We have seen some increasing demands in the automotive and, of course, data and artificial intelligence market storage devices,” he said.

In the first five months, exports of electronic products inched up by 0.9% to $17.799 billion from $17.641 billion in the same period last year. In May alone, it grew 8% to $3.846 billion, up from $3.561 billion a year ago.

“But again, this will be tempered by the developments. [So], I am glad that, as Trade Secretary Cristina A. Roque mentioned, we will be sending a ‘renegotiate team,’ as I call it. The presence of the President will be very helpful,” said Mr. Lachica.

A Philippine delegation including Ms. Roque and Special Assistant to the President for Investment and Economic Affairs Frederick D. Go will be in Washington this week to negotiate for a lower tariff.

President Ferdinand R. Marcos, Jr. will also be heading to the US for an official visit from July 20 to 22.

Mr. Lachica said that he is hopeful that a free trade agreement (FTA) will be discussed during the negotiations.

“Because today, without any FTA, whether unilateral or bilateral, we cannot supply the federal government projects. So that is impacting our electronics manufacturing services (EMS) industry,” he said.

In particular, he said that the delegation should highlight the advantages of the Philippines, and how this benefits the US.

“For example, the business process outsourcing industry provides a lot of services to US multinationals, and in our semiconductor industry we have a lot of US multinationals here,” he said.

Mr. Lachica said he also hopes that the US will not change policies stated under Section 232 of the 1962 Trade Expansion Act of the US, which currently exempts some of the sector’s exports, including integrated circuits.

“It’s decades old, but that was the reason we still enjoy some exemptions in the semiconductor space. And I just hope that that does not change, and we just need to take advantage of that,” he said.

He also expressed hopes for the tariff discussions this week to result in lower tariffs for EMS products.

“We are at the crossroads, and part of what we need to do really is to look at the supply chain and the product mix we have in the Philippines compared to Vietnam,” he said.

“In fact, we are talking to the Department of Trade and Industry and to the American Chambers to drill down the products of semiconductors and EMS to see whether we could get leverage or position ourselves to take advantage of those differences in terms of tariff rates for the line items,” he added.

Meanwhile, Mr. Lachica said the Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy Act is helping boost investor confidence in the Philippines.

“We’re seeing some foreign direct investments for electronics companies, but hopefully we will see an increase in that,” he said.

“In terms of inquiries, we’ve seen a lot. Interestingly enough, even the People’s Republic of China has come to the state office to investigate how they can promote investments moving out of China to the Philippines,” he added.

ROOM TO NEGOTIATE
Meanwhile, emerging Asia, including the Philippines, are still positioned to negotiate with the US for lower tariff rates, Pantheon Macroeconomics said.

“Our baseline scenario is that the planned ‘reciprocal’ tariffs on emerging Asia (ex-China) will eventually be softened,” it said in a report on Monday.

“If Vietnam, which boasts the biggest trade surplus with the US in the region, can strike a deal, however fragile, to reduce its ‘reciprocal’ rate to 20% from the egregious 46% proposed initially, then its neighbors should be able to do so too, especially as we still see no appetite for any retaliation.”

Pantheon also noted that most of Mr. Trump’s tariff notices indicated an openness for negotiation.

For example, the Philippines’ letter said the US may consider adjusting the tariff rate if the country opens its closed trading markets and eliminates trade barriers. The tariff rates can be “modified upward or downward,” depending on the steps moving forward.

Countries like the Philippines and Indonesia are expected to not be as impacted by the levies compared to its export-oriented neighbors, Pantheon said.

“That said, among the many likely losers should be some countries that will feel less of a pinch — if any — as they barely rode the front-running wave.”

“In particular, Indonesian and Philippine exports to the US in January to May are up a relatively modest 5% against their long-term uptrend, while Singapore’s have fallen 16%, if we exclude the port city’s unsurprisingly high level of re-exports.”

The United States is the Philippines’ top destination of Philippine-made goods. The latest data from the local statistics authority showed that 15.3% of exports went to the US in May.

“In the long run, we continue to believe that the broad contours of President Trump’s global tariff salvoes probably will improve the export manufacturing prospects of emerging market Asia — at China’s expense — as the region is being given a trade tax advantage it didn’t have just a few months ago,” it added.

Pantheon cited US Secretary of State Marco Rubio’s comments to the press last week, where he noted that many Southeast Asian economies are likely going to have tariffs “better than countries in other parts of the world.”

On the other hand, the tariff uncertainty is more likely to affect export-heavy economies through “near-term investment paralysis.”

“Looking further down the line in this half of 2025, a sharp correction in exports is looking increasingly inevitable, even if the US’ final reciprocal tariffs are rolled back substantially, as the front-loading in shipments enjoyed through the first half naturally unwinds.” — Justine Irish D. Tabile and Luisa Maria Jacinta C. Jocson

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