In a report sent to reporters Tuesday, Japan-based Nomura said the Philippines could gain 0.1% of its gross domestic product from the US-China trade diversion, adding that the country could capitalize on stronger American demand for typewriter parts and office machines. Meanwhile, Chinese demand for precious metal ores and concentrates (excluding silver) from the Philippines have surged since the tit-for-tat tariff war began, Nomura also reported. Overall, Vietnam is by far the largest beneficiary, gaining 7.9% of GDP from trade diversion, followed by Taiwan (2.1%), Chile (1.5%), Malaysia (1.3%) and Argentina (1.2%). Since US President Donald Trump fired the first shot, China and the US have deployed tit-for-tat tariffs on two-way trade worth hundreds of billions of dollars. Imports from China—the Philippines’ biggest supplier of imported goods with 21.4% share to total bills—reached $1.92 billion in March, up 50.2% year-on-year from $1.28 billion.

Source: Philippine Star June 04, 2019 08:15 UTC