Manila: The country’s largest food ingredient and oleochemical manufacturer, D and L Industries, Inc., announced that it continues to receive orders from customers in the United States despite a newly imposed 10-percent blanket tariff. This follows a 90-day pause on a previously announced 17-percent reciprocal tariff on Philippine exports.
According to Philippines News Agency, D and L President Alvin Lao stated in a virtual briefing that while American customers remain active, there is uncertainty regarding future orders due to the unpredictable nature of then-President Trump’s trade policy. “I asked my sales guys a few days ago and they said, so far, our American customers are still ordering. However, they can’t predict if the customer orders, how they will go in the next couple of months because tariffs might go up or they might go down,” Lao explained.
A recent proclamation by US President Donald Trump on April 2 initially levied a 17 percent reciprocal tariff on the Philippines. On April 9, the decision was amended to a 10-percent universal rate with a 90-day pause from the original plan. Lao noted that the tariff is applied upon the arrival of goods in the US, creating uncertainty for buyers facing possible price increases.
D and L exports medium chain triglycerides (MCTs) to the US, which is a key market for this product. However, the US only represents 3 percent of the company’s overall sales, according to Lao. He mentioned that the Philippines appears to be on the lower end in terms of tariff rates, suggesting that the strong bilateral relations between Manila and Washington DC may allow for further negotiations.
Despite these challenges, Lao expressed confidence in D and L’s growth trajectory. The company has increased exports with the opening of a new plant in Batangas, which has expanded production capacity. “That’s really the main reason why we have the growth because we have the capacity,” Lao stated.
In the first quarter of the year, D and L recorded a 35 percent quarter-on-quarter growth in its net income, amounting to PHP333 million. The company is expected to remain on a profitable track.
