Rappler
[Vantage Point] Can the Philippines endure economic pain with Trump’s tariff?
Philippine officials will meet US representatives in Washington D.C. from July 14-18 to discuss the new 20 percent reciprocal tariff on Philippine goods, effective August 1, 2025.
President Trump cited the "significant trade deficit" between the US and the Philippines as the reason for the increased tariff.
The US trade deficit in goods with the Philippines was $4.9 billion in 2024, an increase of 21.8% year-on-year.
Philippine officials are concerned about the 20 percent rate, which is higher than the initially expected 17 percent.
The goal is to negotiate the tariff down to zero, with officials expressing optimism for face-to-face negotiations.
The Department of Trade and Industry (DTI) remains committed to negotiating in good faith for fairer trade terms.
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The United States has imposed a 20 percent tariff on Philippine exports, effective August 1, 2025, which the Philippine Chamber of Commerce and Industry (PCCI) warns could harm the country's export competitiveness.
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The Federation of Filipino Chinese Chambers of Commerce and Industry, Inc. (FFCCCII) strongly condemns the new 20 percent tariff imposed by US President Donald Trump on all US-bound exports, labeling it as a punitive measure that will harm Filipino businesses.
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