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Trump sets 19% tariff on PHL goods
President Ferdinand Marcos Jr. hailed a one-percentage-point reduction in U.S. tariff rates on Philippine exports to 19 percent, resulting from bilateral talks with U.S. President Donald Trump.
The new 19 percent rate, effective August, is higher than the 17 percent initially announced in April but remains the second-lowest in the ASEAN region.
In exchange for the tariff reduction, the Philippines will grant zero tariffs on US automobiles and increase its purchases of some other US goods.
President Trump announced the trade deal on Truth Social, stating that the Philippines will pay a 19 percent tariff while opening its market to the United States with zero tariffs on US exports.
Marcos Jr. emphasized that while the one-percent cut may seem small, it significantly enhances the Philippines' trade competitiveness within Southeast Asia.
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President Ferdinand Marcos Jr. announced a one-percent reduction in US tariffs on Philippine exports, from 20 percent to 19 percent, following talks with US President Donald Trump.
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Philippine business groups are cautiously optimistic as the US announced a 19% tariff rate on Philippine goods, a reduction from a potential 20%, in exchange for the Philippines opening its market to US automobile imports with zero duties.
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President Ferdinand Marcos Jr. departed for Washington D.C. on July 20, 2025, for a three-day official visit, aiming to negotiate a potential bilateral trade deal and discuss defense cooperation with US President Donald Trump.
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Philippine Ambassador to the US Jose Manuel Romualdez stated that the final outcome of the trade negotiations between the Philippines and the US will be known by August 1.
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Finance Secretary Ralph Recto stated that the Philippines is open to lowering tariffs on some US products as a negotiation tactic to secure reciprocal zero or lower tariffs from the US.
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