Trade Deal Secured: Philippines and U.S. Set Tariffs at 19 Percent

Mon Oct 20 2025 06:49:08 GMT+0300 (Eastern European Summer Time)

President Trump announces a new trade agreement with the Philippines, maintaining tariffs at 19% on their exports while reducing tariffs on American goods to zero.

In a significant trade development, President Trump has finalized a deal with the Philippines, establishing a 19% tariff on Philippine exports, while American exports entering the nation will be free from tariffs. This decision came after Trump's meeting with President Ferdinand Marcos Jr. at the White House, where both leaders aimed to bolster economic ties and military cooperation between their countries.

President Trump declared on Truth Social that he had concluded what he called a "beautiful visit" with President Marcos, asserting the commitment to a favorable trade relationship. The 19% tariff represents a minor adjustment from earlier proposals by Trump, who indicated a potential 20% tariff on Philippine exports set to take effect on August 1. The newly reached agreement is aligned with tariffs also imposed on other Southeast Asian nations, indicating a trend in Trump's trade negotiations.

Despite falling short of his ambitious goal to finalize 90 trade agreements within 90 days, Trump's administration has made incremental progress. The focus has shifted to negotiating favorable rates with additional countries, as Trump has emphasized a firm stance on tariffs. “He’s a very tough negotiator,” Trump remarked regarding Marcos before their luncheon discussion.

Marcos's primary objective during his U.S. visit was to promote stronger economic connections, prioritizing trade and investment with the United States. Both leaders expressed a shared vision for a prosperous, secure, and free Indo-Pacific area, as highlighted in the White House's statement before their meeting.

Historically, the U.S. and the Philippines share deep-rooted ties that go back to U.S. colonial rule beginning in 1898 and their collaboration during World War II. This longstanding alliance has faced challenges, particularly under former President Duterte, who shifted focus toward China. Marcos's visit represents a reversal of that pivot, seeking to reinforce U.S. presence and military support in the region.

With the U.S. seeking to maintain its interests in the South China Sea, Marcos has welcomed enhanced U.S. military access, stating the importance of their alliance in keeping regional stability. His arrival in the U.S. preceded meetings with Defense Secretary Pete Hegseth and discussions with American business leaders about investments in the Philippines.

As the U.S. continues to engage with the Philippines amid rising tensions in the region, both nations appear committed to leveraging their historical relationship for economic and security benefits in the future.