U.S. goods will now enter the Philippines tariff-free under a new trade deal announced by President Donald Trump on Tuesday (Washington time), following the conclusion of bilateral talks with President Ferdinand Marcos Jr.
The agreement aims to reduce the Philippines’ trade surplus with the US and expand market access for American exports.
In a post on Truth Social, Trump declared that the Philippines is “going OPEN MARKET with the United States, and ZERO Tariffs.” Trump called Marcos a “tough negotiator.”
In return, goods exported from the Philippines to the U.S. will face a 19 percent tariff—slightly lower than the proposed 20 percent but still higher than the 17 percent rate initially floated by the White House.
Malacañang and President Marcos’ trade delegation have yet to issue an official statement on the deal.
Trump also said both nations agreed to “work together militarily,” though he offered no details on whether this involves enhanced cooperation in the South China Sea, where tensions with China persist.
The U.S. is the Philippines’ third-largest trading partner, with two-way trade reaching USD20.31 billion in 2024. Manila enjoyed a USD3.98 billion surplus, driven largely by USD12.14 billion in exports—more than half of which were electronic products. Imports from the U.S. totaled USD8.17 billion, led by electronics, animal feeds, and cereals.
The Philippines currently enjoys trade surpluses only with the U.S., Hong Kong, and Japan. The U.S. also secured a similar zero-tariff deal with Indonesia, under comparable terms.
