Official portrait of President Donald J. Trump, Friday, October 6, 2017. (Official White House photo by Shealah Craighead)
US, Philippines Finalise Trade Deal at 19% Tariff
US President Donald Trump has announced a new trade deal with the Philippines, confirming that imports from the Southeast Asian nation will now be subjected to a 19% tariff. The agreement comes after a high-level meeting with Philippine President Ferdinand Marcos Jr. at the White House, where both leaders declared the deal a milestone in strengthening economic ties.
US Exports to Face No Tariffs
Under the new terms, American goods exported to the Philippines will not face any tariffs, providing an advantage to US manufacturers and exporters. In contrast, Philippine goods entering the US will be taxed at a 19% rate, slightly below the earlier proposed 20% cap. This shift replaces a previous reciprocal rate of 17%, marking a new phase in bilateral trade relations.
Military and Strategic Engagements Also Discussed
Besides trade, the leaders reportedly discussed enhancing military cooperation. The Philippines is seen as a strategic partner in the Indo-Pacific, and officials hinted at increased defense collaboration. President Trump praised President Marcos as a “strong negotiator” and called the trade arrangement an “open market deal.”
Economic and Political Impact
The United States ran a trade deficit of around $5 billion with the Philippines last year, on a total two-way goods trade of $23.5 billion. The newly agreed tariff is expected to help balance that deficit. However, consumer groups in the US have expressed concerns over potential price hikes on imported Philippine products, including electronics, textiles, and seafood.
The deal follows a series of similar tariff-based agreements struck by the Trump administration in recent months, including one with Indonesia. More regional deals are reportedly in the pipeline as the administration continues to pursue its tariff-focused trade policy.
