SCUTTLEBUTT

Two to tango

Word in the corridors of power is that the one-percent drop in US tariffs on Philippine goods — from 20 percent to 19 percent — may look modest on paper, but behind the scenes, it’s a handshake signaling something far bigger: the operational rollout of the secretive US-Philippines Agreement on Reciprocal Trade.

President Ferdinand Marcos Jr.’s announcement on 23 July, following talks with US President Donald Trump, is being downplayed publicly as a small win — but insiders say it’s the first tangible outcome of months of quiet, high-stakes negotiations. The timing aligns neatly with the broader — and still largely undisclosed — trade pact quietly concluded under Executive Order 14257 last April.

The 19-percent preferential rate now puts the Philippines second only to Singapore in terms of US tariff competitiveness among ASEAN countries. And that’s no accident. Multiple trade watchers believe this signals the beginning of phased implementation, with the Marcos administration now strategically leaking details to manage expectations and gauge domestic reaction.

What’s not being trumpeted is just as telling: the removal of Philippine tariffs on American cars and increased imports of US soy, wheat, and pharmaceuticals aren’t isolated concessions.

They mirror provisions in the broader agreement that opens local markets to US goods, streamlines customs for American exports, and aligns Philippine policy with US digital and national security standards.

Even Ambassador Romualdez’s diplomatic hedging—calling the current deal “a good one for now” --- is being read as coded confirmation that more binding commitments are coming.

And then there’s Trump, who called Marcos a “very tough negotiator” in public, but behind the scenes reportedly pressed for stricter rules on data flows, digital taxation, and IP enforcement—key sticking points for US tech giants.

Whether that’s a long-overdue modernization or a lopsided dependency is now the subject of quiet debate in Makati boardrooms and diplomatic circles.

But make no mistake—while the tariff headline may seem small, the real news is what’s moving silently beneath it.