WASHINGTON: US President Donald Trump said on Tuesday (Jul 22) that Washington and Manila were nearing completion of a “big” trade agreement, as he welcomed Philippine President Ferdinand Marcos Jr. to the White House.
“We’re going to talk about trade today and we are very close to finishing a trade deal, a big trade deal actually,” Trump told reporters at the start of the meeting.
Later on Tuesday, Trump posted on his Truth Social platform that the two countries had concluded the deal, saying: “It was a beautiful visit, and we concluded our Trade Deal, whereby The Philippines is going OPEN MARKET with the United States, and ZERO Tariffs. The Philippines will pay a 19% Tariff,” calling Marcos a “very good and tough negotiator.”
Marcos is the first Southeast Asian leader to meet Trump during his second term. The visit comes as the US looks to strengthen regional ties amid its ongoing strategic competition with China.
TARIFF TALKS
Trump said the two countries “do a lot of business” together and expressed surprise at the “very big numbers” in bilateral trade, which he said would only grow under a trade pact.
The United States recorded a US$4.9 billion trade deficit with the Philippines last year on two-way goods trade totalling US$23.5 billion. The new 19 per cent tariff rate on Philippine imports is just below the 20 per cent threatened by Trump earlier this month, and higher than the 17 per cent he floated in April.
It matches the tariff rate agreed to by Indonesia and undercuts Vietnam’s slightly higher 20 per cent but has taken a tough stance even with close allies. The US has concluded deals with both countries in recent months.
Gregory Poling, a Southeast Asia expert at the Center for Strategic and International Studies in Washington, said Marcos might be able to secure better terms than those reached by Vietnam and Indonesia.
