U.S. President Donald Trump announced a new trade agreement with the Philippines following a White House meeting with President Ferdinand Marcos Jr. on Tuesday, marking a significant shift in bilateral economic relations.
Trade Deal Details Emerge
In a post on Truth Social, Trump stated: "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 percent Tariff." The announcement comes weeks after Trump warned of raising tariffs on Philippine goods to 20% starting August 1 in a letter to Marcos.
Bilateral Ties Strengthen
Marcos described U.S.-Philippines relations as having "evolved into as important a relationship as is possible to have," though the White House has yet to release formal documentation about the agreement. Analysts suggest the deal could reshape supply chains in Southeast Asia, particularly in electronics and agricultural exports.
Business leaders are awaiting clarity on how the 19% fee structure will apply to specific industries. The Philippines – a key U.S. ally in Asia – exported $12 billion worth of goods to America in 2023, including semiconductors, machinery, and tropical fruits.
