US Reduces Tariffs on Philippine Goods to 19% in Exchange for Market Access
On July 22 (US time), President Donald Trump announced that the US and the Philippines have reached a new trade agreement, under which Washington will reduce import tariffs on goods from the Philippines to 19%. In return, Manila agreed to expand its market for US goods with a 0% import tariff.
This announcement was made after a direct meeting between President Trump and Philippine President Ferdinand Marcos Jr. at the White House. This is the first time President Trump has hosted a head of state from Southeast Asia since the beginning of his term.
In the post-talks speech, the US President praised the negotiation role of his Philippine counterpart and emphasized that both sides have reached a consensus on trade. The main content of the agreement is the Philippines opening its market to US goods, while the US applies a 19% import tariff on goods from the Philippines.
The new tariff rate is seen as a slight adjustment from the 20% rate previously announced by President Trump in early July, and higher than the 17% rate proposed in April.
In addition to the trade sector, President Trump also mentioned the possibility of strengthening defense cooperation between the two countries. However, no specific details about the defense-related plans have been disclosed.
