Last sugar shipments to US could land before higher tariffs kick in – BusinessWorld Online
THE Sugar Regulatory Administration (SRA) on Sunday said the last batch of Philippine sugar exports to the US for crop year 2024-2025 is scheduled to arrive in time not to be charged the higher tariffs that will kick in next month.
Exporters in April dispatched two vessels carrying 33,000 metric tons each of raw sugar, to fulfill the US sugar quota for 2025.
The first shipment has arrived in the US, while the second shipment is scheduled to arrive on July 22, SRA Administrator Pablo Luis S. Azcona told BusinessWorld.
“The first shipment was charged a 10% tariff, and the second shipment, hopefully makes it before the August deadline (to qualify for the) 10% rate; otherwise, it will be charged 20%,” he said.
The US in early April imposed reciprocal tariffs on its trading partners but froze them pending trade talks. In the interim it charged a 10% baseline tariff on nearly all imports. Last week the US sent a tariff letter to the Philippines informing it that its rate will be 20%, up from the initial April rate of 17%.
“All being said, we hope this crop year 2024-25, (our sugar) exports will only be affected by the increased tariff of 10% and not the 20%,” Mr. Azcona said.
The US sugar allocation for the Philippines is the third highest after those of the Dominican Republic and Brazil.
The SRA has said that only those who participated in the voluntary purchase of locally produced sugar for export to the US can import sugar in this year’s first round of shipments. — Kyle Aristophere T. Atienza
