After the Filippin visit, Ferdinand Marcos R. Jr within the White House on July 23, 2025, the brand new US-Philippine trade agreement was made. From then on, the Philippines stand before a 19 -percent tariff to export their goods to the United States (USA). Being the primary leader of Southeast Asia who met Trump during his second term, Trump described Marcos as “a superb and hard negotiator.” Marcos also recognizes the United States as “the strongest, closest, closest ally” on the Filipino.
Before the newest trade agreement, in April 2025, the Filippines tariffs were originally set at 17%. The United States plans to extend the speed to twenty% in the beginning of August 2025. But based on the Filipino press agency, the Tariff for the Philippines was reduced by 1 percent in comparison with the 20% rate, which was initially proposed by the United States.
This small reduction was achieved because of diplomatic efforts, wherein the Philippines agreed to the open market with the United States, and America awarded zero tariffs in exchange for his or her products sent to the Philippines. In his last social post, Trump also announced that each countries would work militarily.
More information concerning the US-Philippines trade agreement
As for the contract for a zero tariff for items produced by American, as mentioned in GMA News, Marcos also explained that the zero tariff will only be applied to chose markets. Given the demand of the United States to the open market, the Philippines allow zero tariffs for some American products, similar to agricultural cars and goods. In addition, the Philippines plan to import more American products, especially soy products, wheat, drugs and pharmaceutical products.
“This is how negotiations go. Why the tariff increased from 17% to twenty%, is internal for the US government,” said Marcos in answering the questions whether the recent opportunity brought advantages to the United States.
According to CNN, the American Trade Department reports that last 12 months within the US he imported Filipino goods value $ 14 billion. Some of the imported items include clothing, machines, processed food, computers and other electronic devices.
Controversial ideas for Trump’s tariffs, which he announced in April, gave financial panic for nations world wide. Finally, he stopped a number of the most extreme technique of his plan, while maintaining a ten% common tariff on most goods and imposing higher fees to specific items, similar to cars, steel, copper and aluminum.
However, because the market calm down and the US economy in a stable condition, Trump has recently returned to his plans for higher fees. Letters regarding his plans for brand new tariffs were sent to several countries and it is alleged that they were implemented on August 1.
In addition to the Philippines, Trump presented few contracts with other countries similar to China, Great Britain and Indonesia – that are also subject to 19% tariff. Meanwhile, a major agreement has not yet been reached between the USA and their important trade allies, similar to Canada and the European Union, based on the BBC. As the negotiations are expected, within the meantime the European authorities give attention to strategies of possible retaliation.
