As the Trump tariffs have unsettled the world’s logistics providers and trade stakeholders, Philippine players had seen worst: the port congestion.
While the cost impact from the Trump tariffs is not a joke, Nelson Mendoza, president of the United Portusers Confederation of the Philippines, Inc. (UPC), believes the Philippine logistics sector had seen worst than the Trump tariffs. He cited the “port congestion” in 2015 as the worst nightmare faced by the industry. The UPC held its First Stakeholders’ Summit yesterday, April 22,3, 2025 where the tackle global economic uncertainty, supply chain disruptions, competitiveness and sustainability.
“That port congestion dragged for a year,” said Mendoza.
The Philippines was not also spared by the port congestion during the pandemic that triggered gobal supply chain disruption.
That port congestion period in Manila practically halted the flow of trade in the capital city and left a lasting impact on the vulnerability of the country’s logistics industry. The port congestion in 2014 was exacerbated by the a truck ban imposed by the Manila City government.
This time, however, Mendoza said that the global trade uncertainty is expected to persist over a four-year period or longer if US President Trump gets re-elected, putting local logistics providers and other stakeholders to prepare for various scenarios that may evolve after the 90-day pause in the implementation of the sweeping liberation tariffs the US has imposed on its trading partners, including the Philippines.
Mendoza said the trade uncertainty could run for four years or during the first term of Trump in office, but could also double if Trump wins a second term.
For one, he said, tariffs on the country’s exports to the US would be 17 percent higher than 2024.
So far, he noted that exporters are holding some of their products but not for long because maintaining high inventory also just add up to their cost. Historically, the peak trading season will start in September yet.
In fact, he said, some Chinese manufacturers in the Philippines may be boosting their production to benefit from the lower tariffs compared to producing in China or in other countries, like Vietnam, Taiwan and China, which are hit by the unilateral tariffs imposed by Trump.
Nonetheless, the logistics providers, liners, brokers, forwarders, among others are preparing for any eventuality.
Liners and carriers are urged to assess the situation and be agile to be able to adapt to the evolving trade developments.
