ALBAY — Clean energy think-tank Center for Energy, Ecology, and Development warned that U.S. President Donald Trump’s recent tariff policies underscore the need for a just energy transition.

In a statement, CEED Executive Director Gerry Arances said that Trump’s sweeping trade policy, which increased tariffs on ASEAN goods from 10 percent to 50 percent depending on the country, proves again “the Philippines’ vulnerability to foreign tariffs because of its import-dependent economy and lack of manufacturing base.”

The U.S. has set a 17 percent tariff on Philippine goods which is lower than other ASEAN countries like Vietnam with 46 percent and Thailand with 37 percent. The U.S. cites trade imbalances and security concerns while analysts call it “economic coercion.”

Arances said that while “Trump’s tariffs excluded oil and gas for the most part, the combination of high demand, indirect effects on items essential to the fossil fuel value chain such as steel, aluminum, and others, and the uncertainty of the economic effects of the policy will push up fossil fuel prices.” 

“Securing economic independence should start with reducing reliance on fossil fuels,” he said. 

Renewable energy stability

The clean energy advocate said that although the possibility of changes in the tariff policy is possible, the Philippines must now face this uncertainty with stability.

“Nobody likes unnecessary risks, including businessmen. However, uncertainty will also affect ordinary consumers, whose economic activity is essential for the country’s growth,” Arances said. 

He said that renewables, which are abundant in the country and not influenced by the economic policies of other governments, can help shield Filipinos from potential economic disruptions since it minimizes the impact of global market fluctuations.

Other clean energy advocates like the Institute for Climate and Sustainable Cities have urged the government for economic reforms in energy systems to ensure energy security, lessen environmental impact, and address climate change.

In its reports, the ICSC stressed how the flexibility of renewable energy can address the shortcomings of baseload power which is traditionally supplied by centralized coal and natural gas plants to meet minimum electricity demand.

In its 2025 energy outlook report, ICSC reiterated the need for stable power supply through a decentralized grid because it creates electricity near its use, cuts transmission losses and strengthens the grid. It also allows detection of local power issues early and prevents major problems like the Panay Island blackout in January 2024. “By focusing on localized data, grid operators can respond more effectively to emerging challenges.” 

ICSC recommended that the government fund this long-term energy solution, stressing that “[even though] this transition will take time, it is crucial to prioritize flexibility and decentralization in our country’s system planning and policy-making to facilitate this necessary transition.” (DAA)