Peso falls on Trump’s Korea tariff threat

The peso dropped to the PHP 59-per-dollar level again on Tuesday as US President Donald J. Trump threatened to impose higher tariffs on South Korea.

The local unit ended at P59.085 versus the dollar, weakening by 11.4 centavos from its P58.971 finish on Monday, data from the Bankers Association of the Philippines showed.

The peso opened Tuesday’s trading session weaker at PHP 59.05 against the dollar. Its intraday best was at PHP 59.035, while its worst showing was at PHP 59.10 against the greenback.

Dollars traded went up to USD 1 billion from USD 954 million on Monday.

The peso dropped as the market reacted to Mr. Trump’s fresh tariff threats, the first trader said by phone.

South Korea scrambled on Tuesday to assure the US it remained committed to implementing a trade deal after Mr. Trump said he would hike tariffs on autos and other imports from its ally, blaming a delay in enacting the pact agreed last year, Reuters reported.

Mr. Trump said on Monday that South Korea’s parliament was not living up to its side of the deal by swiftly enacting the agreement he reached with President Lee Jae Myung to make huge investments in US business projects in return for tariff cuts.

South Korea’s presidential Blue House said it was committed to implementing the deal and would continue to take the required steps to finalize it to stave off tariff hikes.

Mr. Trump has upended global trade by imposing tariffs on imports from nearly every country since beginning his second term in office in 2025. In some cases, he has threatened tariff hikes and delayed them or not followed through.

“The peso depreciated anew from stronger than expected US durable goods report, signifying strength in US consumer spending,” the second trader said in a Viber message.

For Wednesday, the second trader said the peso could depreciate further amid expectations that the US Federal Reserve will hold borrowing costs steady at its policy meeting this week.

The first trader sees the peso moving between PHP 58.90 and PHP 59.10 per dollar on Wednesday, while the second trader expects it to range from PHP 59 to PHP 59.25. — A.M.C. Sy with Reuters