Following negotiations with United States President Donald Trump, President Ferdinand R. Marcos Jr. announced on Tuesday a reduction of the U.S. tariff rate on Philippine goods from 20 percent to 19 percent.
“We managed to bring down the 20 percent tariff rate for the Philippines to 19. Now, one percent might seem like a very small concession. However when you put it in real terms, it is a significant achievement,” President Marcos said in an interview with the Philippine media delegation before heading back to Manila.
The revised tariff rates placed the Philippines among the most competitively positioned Southeast Asian economies trading with the United States. Currently, the Philippines holds the second-lowest tariff rate in the region at 19 percent, with Singapore, which has a bilateral Free Trade Agreement (FTA) with the U.S., maintaining the lowest at 10 percent. U.S. tariffs for other Association of Southeast Asian Nations (ASEAN) countries range between 19 percent to 49 percent.
Philippine Ambassador to Washington Jose Manuel Romualdez said trade discussions will continue.
“The lowering of tariff to 19 percent is a good deal for the moment but there is still more that we can do and that there will still be more discussions ahead,” Romualdez said.
In a joint press conference before their bilateral meeting at the White House, Trump described President Marcos as a “very tough negotiator” in advancing Philippine interests.
“We’ll probably agree to something. But he is a strong negotiator. He loves your country,” said Trump.
Under the trade deal, President Marcos confirmed that the Philippines will remove tariffs on American automobile imports.
“Because we have a tariff on American automobiles, we will open that market and no longer charge tariffs on that,” said President Marcos.
On the other hand, the President noted that the Philippines will increase imports from the United States for soy products, wheat, and pharmaceuticals.
“Mas maging mas mura ‘yung gamot natin,” the President stressed.
“There’s still a lot of detail that needs to be worked out on the different products and the different exports and imports,” he added. The US is a top trading partner of the country with bilateral trade of over $20 billion in 2024. | PND
