Marcos defends U.S. tariff cut as ‘significant achievement’

Despite facing criticism, President Ferdinand R. Marcos Jr. defended the recent reduction in U.S. tariff rates on Philippine exports — from 20 percent to 19 percent — calling it a “significant achievement” resulting from bilateral talks with U.S. President Donald Trump.

While the one-percentage-point cut may appear minimal, Marcos emphasized its broader impact on the country’s trade competitiveness.

“We managed to bring down the 20 percent tariff rate for the Philippines to 19. Now, one percent might seem like a very small concession. However, when you put it in real terms, it is a significant achievement, Marcos told the Philippine media delegation before departing Washington, D.C. on Wednesday (Manila Time).

Malacañang said the adjustment in tariff places the Philippines among the most competitively positioned Southeast Asian nations trading with the United States. 

At 19 percent, the Philippines now has the second-lowest U.S. tariff rate in the ASEAN region — next only to Singapore, which enjoys a 10 percent rate through a bilateral Free Trade Agreement. 

Other ASEAN nations face tariffs ranging from 19 percent to 49 percent.

Philippine Ambassador to the U.S. Jose Manuel Romualdez welcomed the development but said negotiations are far from over.

“The lowering of tariff to 19 percent is a good deal for the moment but there is still more that we can do and that there will still be more discussions ahead,” Romualdez said.

During a joint press event at the White House, Trump described Marcos as a “very tough negotiator,” crediting him for pushing Philippine trade interests firmly at the table.

“We’ll probably agree to something. But he is a strong negotiator. He loves your country,” Trump remarked.

As part of the evolving trade deal,  Marcos confirmed that the Philippines would eliminate tariffs on imported American automobiles—a move expected to open up the domestic auto market to more U.S. brands.

“Because we have a tariff on American automobiles, we will open that market and no longer charge tariffs on that,” he said. 

The President also announced that the Philippines will increase imports of U.S. soy products, wheat, and pharmaceutical goods, with the goal of lowering medicine costs for Filipinos.

“Mas magiging mas mura ‘yung gamot natin,” Marcos noted.

Marcos added that further negotiations are needed to finalize details across various product categories.

“There’s still a lot of detail that needs to be worked out on the different products and the different exports and imports,” he said.

The United States remains one of the Philippines’ largest trading partners, with bilateral trade reaching over $20 billion in 2024.