U.S. TARIFFS

The Philippines plans to engage in negotiations with the United States to reduce tariffs, following Washington’s decision to impose higher 20% duties on goods imported from Manila. This was announced by Philippine Ambassador to the United States Jose Manuel Romualdez on Thursday.

“We are still planning to negotiate that down,” Romualdez informed Reuters in a phone message.

The move comes after U.S. President Donald Trump on Wednesday issued August 1 tariff notices to several trading partners, including the Philippines, where a 20% duty was set. This rate is an increase from the previously announced 17%. The Philippines was one of seven countries, including Algeria, Brunei, Iraq, Libya, Moldova, and Sri Lanka, to receive such letters.

In his letter, Trump stated that the 20% tariff for the Philippines would take effect on August 1, replacing an earlier 17% rate that was set for April 2. Trump had previously suspended all but 10% of the April 2 rates until July 9 to allow for further negotiation, a deadline now extended to August 1.

President Trump’s letter cited long-standing trade imbalances, stating, “We have had years to discuss our Trading Relationship with Bangladesh, and have concluded that we must move away from these long-term, and very persistent, Trade Deficits engendered by Philippines’s Tariff, and Non Tariff, Policies and Trade Barriers. Our relationship has been, unfortunately, far from Reciprocal.”

Data from the Office of the United States Trade Representative indicates that U.S. goods trade with the Philippines reached an estimated $23.5 billion in 2024. U.S. exports to the Philippines totaled $9.3 billion, a 0.4% increase from 2023, while imports from the Philippines amounted to $14.2 billion, marking a 6.9% rise year-over-year.

Consequently, the U.S. goods trade deficit with the Philippines expanded to $4.9 billion in 2024, representing a 21.8% increase from the previous year.