Manila auto parts makers eye 20% boost in US orders

Local manufacturers and exporters of automotive parts are projecting a 20% increase in orders from the United States, driven by the latest tariff measures imposed by the Trump administration.

Rommel Juan, Philippine Parts Makers Association or PPMA vice-president, said that while initial expectations point to softer demand overall, industry players are optimistic that the Philippines’ lower tariff rate of 17% will attract more orders compared to other countries facing steeper levies.

“Definitely, I think we have an advantage because in some of the parts that we produce, our competitors are China, India and Vietnam,” he said in a phone interview.

To recall, the United States imposed steep import tariffs of 46% on products from Vietnam, 26% on India and a massive combined tariff of 145% on China.

“We’re starting to call our customers in the United States now. There’s no feedback yet, but we’re expecting that they’ll be ordering more from us,” he added.

He said they expect the US market to grow beyond its current multi-billion peso valuation. With this in mind, he said the local exporters were already mapping out plans to scale up production.

He said some firms were also reviewing their supply chain strategies to ensure timely delivery and quality compliance with new US orders.

Despite the optimism, Juan emphasised that the projected growth hinges on how the US tariffs are implemented and how buyers adjust their sourcing strategies in the coming weeks.

On April 2, Trump unveiled a new 17% tariff on exports from the Philippines. But in an unexpected move, he announced a temporary suspension of the tariff, allowing room for renewed negotiations with affected trade partners, including the Philippines.

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