Brands that might benefit from the new PH-US trade deal
PH is set to impose zero tariff rates on imported US products, including cars
If you’ve been keeping up with the latest news, you’re probably aware that the United States and the Philippines have established a new trade deal. The aforementioned was made possible via a discussion between US President Donald Trump and President Ferdinand Marcos Jr.
KEY TAKEAWAYS
What tariff arrangement has the Philippine government agreed to in response to the 19 percent U.S. tariff on Philippine exports?
In return for a 19 percent U.S. tariff on Philippine exports, the Philippine government will impose a zero percent tariff on imports from the United States.Which locally available Subaru model is made in the United States?
The locally available Subaru model made in the US is the Evoltis.To be more specific, President Marcos successfully persuaded Trump to reduce the US tariff rate on products from the Philippines from 20 to 19 percent. At face value, the figure sounds small, but the one percent reduction will place the country in a position to competitively trade with Uncle Sam.
As a trade-off, President Marcos also confirmed, via a joint press conference with President Trump, that the Philippine government will enact zero percent tariffs on US-made products.
For the keen car enthusiast, the aforementioned could result in lower prices for US-made cars. The said move, after all, might give local distributors enough leeway to lower the prices of vehicles sourced from the US.
So, what are the brands (and models) that will likely benefit from this? Let’s find out here.
Cars
Ford
Ford, while popular for its Thai-made Ranger and Everest models, also ships the Bronco, Mustang, and Explorer from the US. Specifically, the off-road sport utility vehicle (SUV) is built in Wayne, Michigan, while the pony car is produced at a separate facility in Flat Rock, Michigan. The Ford Explorer, on the other hand, is made at the marque’s Chicago Assembly Plant - the same facility that builds the Ford Police Interceptor.
Currently, the locally available Bronco Outer Banks with Sasquatch Package retails at P4.998 million. The Mustang, meanwhile, has a price ranging from P3.499 million-P3.999 million across two trims. The Explorer is sold locally as the Limited 4WD AT at P3.498 million.
Chevrolet
A majority of Chevrolet Philippines’ local offerings, such as the Trax, Captiva, Trailblazer, and Tracker, are produced in Asia. Its higher-end models, however, are made in the US.
For starters, both the Tahoe and Suburban fullsize SUV models are manufactured in Texas. The brand’s V8-powered Corvette, on the other hand, is made in Kentucky.
Here are the current prices for the said models in the Philippines:
|
Chevrolet Tahoe |
P7,702,888 |
|
Chevrolet Suburban |
P8,634,888 |
|
Chevrolet Corvette |
P12,571,888 |
Jeep
For Jeep Philippines, both the two-door and four-door versions of the Wrangler are made in Toledo, Ohio, while the Grand Cherokee L is built at the brand’s Mack plant in Detroit, Michigan.
Check out the table below for the current pricing details of the Jeep Wrangler and Grand Cherokee L:
|
Jeep Wrangler 4-Door Sport |
P4.79 million |
|
Jeep Wrangler 2-Door Rubicon |
P5.59 million |
|
Jeep Wrangler 4-Door Rubicon |
P5.78 million |
|
Jeep Grand Cherokee L Limited |
P5.49 million |
Ram
The Ram 1500 Rebel, available locally for P5.25 million as the crew cab V8-Hemi 4x4 version, is manufactured in Sterling Heights, Michigan.
As a side note, the said plant also produces the famous but locally unavailable Ram TRX. Also not sold in the Philippines are the heavy-duty Ram 2500, 3500, 4500, and 5500 - all of which are produced at Ram’s Saltillo Truck Assembly Plant in Mexico.
Subaru
While Subaru is undoubtedly a Japanese brand, all iterations of the Evoltis three-row crossover, including the one sold locally, are manufactured at the brand’s plant in Lafayette, Indiana.
To note, the Evoltis is known as the Ascent in the United States. And interestingly enough, it isn’t even available in Japan.
As of this writing, the Subaru Evoltis sold locally starts at P3.78 million.
Motorcycles
Harley Davidson
A good majority of Harley-Davidson models might also benefit from the lifting of tariffs on US-made products sold in the Philippines.
But to be more specific, the Softtail, Touring, Trike, and Custom Vehicle Operations (CVO) lineups are all assembled at the brand’s plant in York, Pennsylvania. Some components, however, are sourced from other countries. The iconic Milwaukee engine, on the other hand, is manufactured in Menomonee Falls, Wisconsin.
Indian Motorcycles
According to Indian Motorcycle Philippines, all of its models, including its Cruiser, FTR, Bagger, Touring, and Elite lineups, are all assembled in Spirit Lake, Iowa. The engines, meanwhile, are produced at a facility in Osceola, Wisconsin.
Some considerations
Like many experts have already pointed out, we have virtually no idea how the “zero tariffs” on US imports will pan out in the real world. As of this writing, no guidelines or laws have been released on the matter, after all. So, for the moment, let’s play the waiting game and see what our policymakers (and car distributors) make of this development.
However, to end on a more hopeful note, other brands like Toyota and Honda could be enticed to introduce some nameplates that are currently produced in the United States. For Toyota, there’s the famous Tacoma pickup truck, the Sienna minivan, and the 4Runner SUV. Honda in the US also makes the Odyssey minivan.
It might even encourage some newer US brands that aren’t present locally to finally come to our shores. Fingers crossed.
Also read:
Toyota Fortuner vs Honda CR-V vs Isuzu mu-X: SUVs for the rainy season
Interesting police cars from around the world
Take a look at some rain-ready 2-wheelers from Yamaha Motor PH
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