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Automobiles

Philippine auto tariffs send chill through pandemic-hit industry

Foreign automakers expect greater disruption from new safeguards

A Toyota Motor factory in Laguna, close to the capital city of Manila. The Philippines subsidizes automakers that assemble vehicles in the country. (Photo by Neal Oshima)

MANILA/BANGKOK -- As the Philippines prepares to enact import safeguards on automobiles next week in a bid to protect domestic business, foreign automakers are bracing for a major disruption to their supply chains and the market as a whole.

A leading industry lobby and companies like Toyota Motor, a top player in the country, have expressed concern that the tariffs would only hurt the Philippines' auto industry, which depends heavily on shipments from neighbors like Thailand. Still, the country is eager to bolster domestic auto production, which has taken a major hit from Southeast Asia's push toward free trade.

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