Philippines: US tariff talks still unfinished — says official
Philippines Secures 1‑Point Relief in U.S. Tariff Talks
The White House hosted Filipino President Ferdinand Marcos earlier this week, culminating in a single‑point drop from a 20‑percent tariff on Philippine goods. Marcos returned home late Wednesday after a three‑day Washington visit, signifying a milestone achievement for the archipelago.
Key Takeaways
- Small concession, big win – Marcos framed the tariff cut as a “significant achievement,” easing concerns that the Philippines might be getting the short end of the trade deal.
- Zero tariffs on U.S. goods – Trump promised no levies on American products destined for the 115‑million‑strong nation.
- Not finished – Marcos’ economic adviser, Frederick Go, stressed that negotiations are still ongoing, with technical working groups slated to “finalize the details.”
Tariff Impact on Philippine Exports
Marcos’ administration has downplayed the potential effects of the new tariff regime. Only 16% of Philippine exports go to the United States, with roughly two‑thirds comprised of electronic components exempt from tariffs. Go announced that while tariffs will disappear for certain agricultural commodities like soy and wheat, key sectors such as sugar, corn, rice, fish and pork will remain protected for Filipino farmers.
Consumer Benefits
Go highlighted that dropping tariffs on pharmaceuticals could lower medicine prices in the Philippines, potentially making drugs more affordable for the local population.
Academic Perspective
Jesus Felipe, an economics professor at De La Salle University, noted that the full 19% tariff would likely hit a low number of Philippine products. He added that many Philippine exports would require exemptions, mitigating the economic impact. Felipe observed that the U.S. “imperialist attitude” towards smaller trading partners remains concerning, especially in comparison to countries like China, Mexico and Canada, which possess greater leverage to counter U.S. trade policies.
Future Outlook
Marcos’ administration confirms that the U.S. will not blanket all categories with tariffs, and technical discussions will continue. The Philippine economy remains poised to navigate these trade negotiations while safeguarding its agricultural and industrial interests.
