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Trump reduces tariffs on the Philippines to 19% in exchange for opening its market
Washington.– The president of the United States, Donald Trump, announced this Tuesday that he reached an agreement with the Philippines whereby exports from that country to the U.S. will pay tariffs of 19%, one percentage point less than the figure that would apply from August 1st.
The message was posted on the US president’s platform, Truth Social, shortly after the visit of Philippine President Ferdinand Marcos Jr. to the White House.
“It has been a beautiful visit. We have closed our trade agreement, through which the Philippines will open its market to the United States and apply zero tariffs. The Philippines will pay a 19% tariff. In addition, we will collaborate militarily,” said the Republican leader.
Trump noted that his Filipino counterpart is “highly respected” in his country, “as he should be,” and as he had done moments earlier at the White House, he called him a “tough and very good” negotiator.
In that meeting, in the Oval Office, the American president had stated that they were “very close” to closing “a great tariff agreement”.
On July 9th, Trump threatened the Philippines with 20% tariffs starting August 1st unless an agreement was reached before that date, which happened this Tuesday.
According to the Office of the U.S. Trade Representative in the Philippines, trade in goods between the U.S. and the Asian archipelago totaled about $23.5 billion in 2024.
U.S. goods exports to the Philippines last year were $9.3 billion, up 0.4% from 2023, while U.S. imports of Philippine goods reached $14.2 billion, an increase of 6.9%.
Washington points out that the U.S. trade deficit in goods with the Philippines last year was 4.9 billion, 21.8% more year-on-year.
Marcos Jr. went to Washington with two clear objectives: to reduce US tariffs on Filipino products and to obtain funds to strengthen its armed forces, involved in territorial disputes with Beijing in the South China Sea.
“The modernization of the Philippine Army responds to the circumstances surrounding the situation in the South China Sea. What we used to call Asia-Pacific has now expanded to the Indo-Pacific,” said the Filipino president during his meeting with Trump.
United States, Marcos Jr. pointed out, is helping the Philippines in defense to stand on its own “regardless of future circumstances”.
“The reason we have fostered greater interaction with the United States is because, I insist, it is necessary, and not only with the United States, but with all our neighbors and even with countries as distant as the Scandinavians or the European Union,” the Filipino president added.
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