Trump’s Philippines Deal: 19% Tariff, US Pays Nothing!
Trade pact boosts alliance, counters China in Indo-Pacific.
President Donald Trump announced a new trade agreement with Philippine President Ferdinand Marcos Jr. on Tuesday, imposing a 19% tariff on Philippine goods while exempting U.S. exports from import taxes. The deal, revealed on Truth Social, follows a White House meeting and strengthens economic and military ties amid rising tensions in the Indo-Pacific.
Trump described the agreement as a “beautiful” milestone, praising Marcos as a “very good, and tough, negotiator.” The tariff rate, down from a threatened 20% set for August 1, aims to address the $4.9 billion U.S.-Philippines trade imbalance, per Census Bureau data. The Philippines will open its market to U.S. goods, though specific details remain undisclosed.
The announcement coincides with Marcos’ three-day U.S. visit, highlighting the strategic alliance between the two nations, especially as China asserts dominance in the South China Sea. Marcos emphasized the deep U.S.-Philippines partnership, stating, “Our strongest partner has always been the United States.” He stressed an independent foreign policy, avoiding the need to balance relations with China.
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The agreement follows discussions on security, with Marcos meeting Secretary of State Marco Rubio and Defense Secretary Pete Hegseth. Hegseth reaffirmed U.S. commitment to “peace through strength” and mutual defense, building on joint exercises and U.S. support for modernizing the Philippine military. Marcos thanked the U.S. for backing Manila against regional threats, particularly in the contested Scarborough Shoal.
Tensions in the South China Sea, involving China, the Philippines, and other nations, remain high, with Chinese coast guard actions targeting Filipino vessels. Chinese Foreign Ministry Spokesperson Guo Jiakun cautioned that U.S.-Philippines cooperation should not “incite confrontation” or harm third parties. Meanwhile, Rubio’s recent talks with Chinese Foreign Minister Wang Yi in Malaysia underscored efforts to manage differences while exploring cooperation.
Trump’s deal aligns with his broader tariff strategy to bolster U.S. manufacturing and reduce trade deficits. However, concerns persist about potential price increases for consumers if businesses pass on tariff costs. The agreement marks Marcos as the first Southeast Asian leader to negotiate with Trump in his second term, reinforcing a historic alliance amid shifting geopolitics.
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