The U.S. and the Philippines reached terms on a deal focused on tariffs and market access, President Donald Trump posted on Truth Social Tuesday.
Under the “concluded” trade deal, imports from the Philippines would be subject to a 19% tariff, according to Trump. Meanwhile, U.S. exports would have full market access to the country and face “ZERO tariffs,” the president said.
Earlier this month, Trump said imports from the Philippines were scheduled to incur a 20% tariff starting Aug. 1. Trump initially announced a lower rate of 17% in April, which was later paused.
“We do a lot of business with [the Philippines], it’s a lot of income coming in for both groups,” Trump said at the Oval Office Tuesday, prior to announcing the deal. “But I was surprised to see the kind of numbers — they are very big — and they are going to get bigger under what we’re doing and what we’re proposing.”
As of publication time, the White House has yet to reveal official documentation of the agreement.
However, Philippines President Ferdinand Marcos Jr. said during a Wednesday media briefing that U.S. automobiles were a major area of the deal.
“We will open that market, and no longer charge tariffs on that,” Marcos said.
The proposed pact is also meant to increase imports of U.S. soy and wheat products, as well as pharmaceuticals, Marcos said.
“We managed to bring down the 20% tariff rate for the Philippines to 19,” said Marcos. “Now, 1% might seem like a very small concession, however when you put it into real terms it is a significant achievement.”
In 2024, the U.S. had a $5 billion trade deficit with the Philippines, with imports accounting for 0.4% of U.S. trade, according to data from the U.S. International Trade Comission. Meanwhile, the U.S. exported about $9 billion in products to the Philippines last year.
The tariff deal announcement was one of several from the Trump administration this week. The White House unveiled terms of a trade agreement framework with Indonesia Tuesday, while Trump said the U.S. had reached a deal with Japan Tuesday evening. Officials from Japan later confirmed certain details of the pact, such as a 15% duties on imports from the country, including for cars and auto parts.
Previously, the U.S. and the UK finalized certain terms of a deal, while negotiations are ongoing for a pact with China. Trump also said earlier this month that the U.S. had struck a deal with Vietnam, but the country has not provided confirmation through official channels.
