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.
Philippine Trade and Industry Secretary Ramon Lopez announced this month that the country would start imposing a 70,000 peso ($1,460) tariff on passenger cars and 110,000 pesos on light commercial vehicles.
“The provisional safeguard measures will provide a breathing space…
