US imposes 20% tariff on Philippine imports starting Aug 1

The Department of Trade and Industry (DTI) expressed concern over US President Donald Trump's decision to impose a 20% tariff on Philippine imports starting August 1, despite ongoing efforts by Manila.

Trump informed President Ferdinand Marcos Jr. about this higher rate in a letter dated July 9, which is three percentage points higher than the previously announced 17% reciprocal tariff.

Frederick Go, Special Assistant to the President for Investment and Economic Affairs, said the Philippines remains committed to negotiating better terms with the US in good faith, emphasizing that the 20% rate is still the second-lowest among regional countries.

Data from the US Trade Representative showed America's goods trade deficit with the Philippines increased by 21.8% year-on-year in 2024, prompting Trump to cite significant trade deficits as a reason for the higher tariff.

A delegation led by Go alongside Trade Secretary Cristina Roque will travel to Washington D.C. next week to negotiate a more favorable tariff deal and continue discussions on strengthening bilateral trade relations.