Following the Philippine’s President, Ferdinand Marcos R. Jr’ visit to the White House on the 23rd July 2025, US-Philippines new trade agreement has come to a conclusion. From now on, the Philippines will face a 19 percent tariff to export their goods to the United States (US). Being the first Southeast Asian leader to meet up with Trump during his second term, Trump described Marcos as a “very good and tough negotiator”. Marcos also acknowledges the US as Philippine’s “strongest, closest, most reliable ally”.
Prior to the latest trade deal, in April 2025, tariffs for the Philippines were originally set at 17%. The U.S plans to raise the rate to 20% by the beginning of August 2025. But according to Philippine News Agency, the tariff for the Philippines has been reduced by 1 percent from the 20% rate that the United States initially proposed.
This modest reduction was reached through diplomatic efforts, in which the Philippines agreed to go Open market with the United States, with America granted zero tariffs in return for their products shipped to the Philippines. In his recent Truth Social Post, Trump also announced that the two countries will be working together militarily.
More details on US-Philippines Trade Agreement
Regarding the zero tariff deal on American-made items, as mentioned in GMA News, Marcos further explained that the zero tariff will only be imposed on selected markets. Given the United State’s demand for an open market, the Philippines will allow zero tariffs on certain US products, such as automobiles and agricultural goods. Moreover, the Philippines is planning to import more US products, particularly soy, wheat, medicines, and pharmaceutical products.
“That’s how negotiations go. Why the tariff went up from 17% to 20% is internal to the US government,” Marcos answered in response to the questions about whether the recent bargain benefited the US more.
The US Commerce Department reports that last year, US imported $14 billion worth of Philippine goods, according to CNN. Some of the imported items include clothing, machinery, processed foods, computers and other electronic devices.
Trump’s controversial tariff ideas that he announced in April has inflicted financial panic for nations across the globe. He eventually put to halt some of his plan’s most extreme measures, while still maintaining a 10% universal tariff on the majority of goods and imposing higher charges on particular items like cars, steel, copper, and aluminum.
However, with the market calming down and the US economy in stable condition, Trump has recently reverted back to his plans for higher levies. Letters regarding his plans for new tariffs have been sent to several countries and it is said to be implemented as of August 1.
Besides the Philippines, Trump has unveiled few agreements with other countries such as China, UK and Indonesia—that is also subjected to a 19% tariff. Meanwhile, no significant agreement has yet been reached between the US and their main trading allies such as Canada and the European Union, according to BBC. As negotiation expectations wane, in the meantime European authorities are focusing on strategies for possible retaliation.
