Philippines eyes tariff reduction, FTA with US amid Trump’s trade policies

The Philippines is considering lowering tariffs on US goods in response to President Donald Trump's 10% baseline tariff and is eyeing a possible Free Trade Agreement (FTA) with the United States.

Trade Secretary Cristina Roque stated that the economic team will meet soon to discuss tariff reduction and a possible collective ASEAN response, focusing on opportunities for products like semiconductors, coconut, and agricultural goods.

ASEAN trade ministers met in Kuala Lumpur to discuss the regional bloc's response to Trump's tariffs, aiming for bilateral negotiations and cooperation rather than retaliation.

The Philippines is also monitoring the actions of neighboring Asian countries, noting varying tariff impacts on ASEAN members ranging from 10% for Singapore to 49% for Cambodia.

ASEAN has welcomed the US’s decision to pause these tariffs until July, recognizing it as a positive but temporary development and focusing on formulating mitigation strategies to safeguard member state interests while maintaining investor confidence.

The regional coalition is keen on enhancing existing cooperation platforms such as the Trade and Investment Facilitation Agreement (TIFA) and exploring new agreements to bolster supply chain resilience and expand market access.