US president Donald Trump on Tuesday announced that the Philippines will pay a 19% tariff under a new trade agreement between the two countries.
"It was a beautiful visit, and we concluded our trade deal, whereby the Philippines is going open market with the United States and zero tariffs. The Philippines will pay a 19% tariff," news agency Reuters reported Trump as saying following a meeting with Philippine president Ferdinand Marcos at the White House.
The bilateral meeting took place as both countries seek closer security and economic cooperation, particularly amid China's assertiveness in the South China Sea. Marcos’ visit is the first by a South East Asian leader to Washington during Trump’s second term and includes talks with top US officials like secretary of state Marco Rubio and defence secretary Pete Hegseth.
As the leaders met in the Oval office, Trump praised Marcos as a “tough negotiator” while suggesting that topics of discussion included “war and peace” as well as trade. Marcos, in turn, said the US has always been the Philippines' “strongest partner” and reaffirmed Manila’s commitment to an independent foreign policy.
Tensions over tariffs had surfaced ahead of the visit. Trump had earlier threatened a 20% tariff on Filipino goods unless a deal was reached by August 1. Back in Manila, Marcos had indicated his readiness to negotiate, while finance secretary Ralph Recto said the Philippines might offer zero tariffs on some US goods in exchange.
Meanwhile, China warned that any US-Philippine cooperation should not "target or harm" third parties.
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