US tariff discussions with the Philippines have not concluded, as confirmed by relevant authorities.
In a significant development, President Ferdinand Marcos Jr. returned to the Philippines after a three-day trip to Washington, where he concluded a trade agreement with U.S. President Donald Trump. The agreement establishes an asymmetrical tariff structure, with U.S. exports entering the Philippines tariff-free, while Philippine exports continue to face a 19% tariff [1][2][3].
The deal grants tariff-free status to a wide range of U.S. goods, including automobiles, soybeans, wheat, and pharmaceuticals. However, Filipino goods entering the U.S. will still be subject to a 19% tariff, replacing a temporarily imposed 10% universal tariff and a previously threatened 20% duty under Trump’s April “Liberation Day” tariffs initiative [1][2].
The agreement has sparked debates and concerns among economists and observers. Critics view the agreement as uneven and favouring U.S. economic interests, citing the asymmetry and limited gains for the Philippines [1][4]. On the other hand, proponents argue that the deal reflects a strategic concession by the Philippines to preserve continued access to the critical U.S. market while avoiding more punitive tariffs.
Frederick Go, Marcos' economic adviser, stated that tariffs would not be dropped in every category. Certain agricultural products are excluded from the arrangements with the United States, according to Go [2]. This means that tariffs will disappear for certain agricultural products like soy and wheat, but key areas such as sugar, corn, rice, fish, and pork will remain protected for Filipino farmers.
Economics professor Jesus Felipe from Manila’s De La Salle University suggested that the actual number of Philippine exports affected by the full tariff might be low. He also pointed out that countries with larger US trade deficits, such as China, Mexico, and Canada, have more power and leverage to counteract the tariffs [2].
Despite these concerns, the Marcos administration has downplayed the potential effects of the tariffs. Felipe, the Finance Secretary, emphasized the potential benefit to Filipino consumers from the removal of tariffs on pharmaceuticals, stating that the lower price of medicines in the country could result from tariff-free medicines [1].
Negotiations regarding the tariffs are ongoing, as technical working groups will continue to work with their American counterparts. The discussions around the potential impact of tariffs on the Philippine economy continue to evolve, with the future of trade relations between the two nations yet to be fully determined.
References:
[1] ABS-CBN News. (2025, July 24). Marcos, Trump sign trade deal, lowering tariffs on Philippine goods to U.S. Retrieved from https://news.abs-cbn.com/business/07/24/25/marcos-trump-sign-trade-deal-lowering-tariffs-on-philippine-goods-to-us
[2] Reuters. (2025, July 23). Philippines, U.S. reach trade deal, lowering tariffs on Philippine goods to U.S. Retrieved from https://www.reuters.com/world/us/philippines-us-reach-trade-deal-lowering-tariffs-philippine-goods-us-2025-07-23/
[3] The White House. (2025, July 23). Remarks by President Trump and President Marcos of the Philippines in Joint Press Conference. Retrieved from https://www.whitehouse.gov/briefings-statements/remarks-president-trump-president-marcos-philippines-joint-press-conference-2/
[4] The Diplomat. (2025, July 24). Philippines-U.S. Trade Deal: A Lopsided Victory for Washington? Retrieved from https://thediplomat.com/2025/07/philippines-us-trade-deal-a-lopsided-victory-for-washington/
- Critics argue that the recently signed trade agreement between the Philippines and the United States is uneven, claiming it favors U.S. economic interests due to the asymmetrical tariff structure, similar to the concerns faced by countries such as Canada, Mexico, and China with their trade deficits.
- Despite potential concerns regarding the impact of the tariffs on the Philippine economy, officials like Finance Secretary Felipe have highlighted potential benefits, such as the reduction of tariffs on pharmaceuticals, which could lead to lower medicine prices for Filipino consumers.
- Ongoing negotiations between the Philippines and the United States involve technical working groups collaborating with their counterparts to define the future of trade relations and address issues like tariffs in key business sectors like agriculture, which remain protected for Filipino farmers.
