By Ginggay Hontiveros-Malvar, Chief Reputation and Sustainability Officer, Aboitiz Group and President, Aboitiz Foundation
This article originally appeared on the author’s Tribune.net column ‘On the G(ood) Side’.
Just when the world thought it had adjusted to the rhythms of global trade, United States President Donald Trump announced a “reciprocal” tariff policy listing nearly every trading partner of the US.
Under this policy, Philippine exports to the US will face a 17 percent tariff, the second-lowest among ASEAN nations. Aside from the obvious impacts debated upon by economists, this may also have significant implications for the country’s sustainability goals. Trade barriers would force businesses to absorb higher costs or seek alternative sourcing strategies, and both scenarios have direct consequences for how companies uphold their environmental responsibilities.
Many local manufacturers rely on imported raw materials to maintain the quality and sustainability of their products. When tariffs drive up costs, there’s a growing temptation to switch to cheaper, less sustainable alternatives. That can mean sourcing from suppliers with weaker environmental safeguards or abandoning certified, eco-friendly inputs in favor of more affordable — but more harmful — options. In this environment, cost pressures can quietly undo years of hard-earned progress toward responsible production and ethical sourcing.
Economic uncertainty also has a chilling effect on long-term investment. When companies are focused on navigating cost spikes and shrinking markets, sustainability initiatives such as carbon reduction programs or renewable energy transitions are often the first to be shelved. While this short-term survival instinct is understandable, the long-term costs of backtracking on sustainability could be damaging to business resilience and reputation.
But within every disruption lies opportunity. One promising outcome of trade tensions is the renewed push for self-reliance. As imports become more expensive, businesses may start investing in domestic supply chains, innovate to become more competitive, and consider the opportunity to rebuild them with sustainability integrated from the beginning. Localizing production can reduce emissions from transportation, support small and medium enterprises, and allow for closer oversight of environmental practices.
Trade realignments can also open new doors. As Philippine companies explore partnerships beyond traditional markets, we have a chance to align ourselves with countries that embed sustainability into their economic frameworks. The need to comply with stricter environmental standards when entering these ecosystems could stimulate long-term internal reforms within our industries.
The key is to ensure that this moment of transition is not wasted. Philippine businesses can view sustainability as a strategic advantage. In an increasingly climate-conscious global economy, companies that double down on ethical sourcing, clean technologies, and low-carbon operations will not just survive—they will lead.
