President Donald Trump revealed on July 22 that a trade agreement had been reached with the Philippines, shortly after the nation’s leader visited the Oval Office ahead of an Aug. 1 reciprocal tariffs deadline. Trump stated that the Southeast Asian country would be subjected to a 19% tariff.
In a social media post, Trump shared, “President Ferdinand Marcos of the Philippines has just concluded a productive visit to the White House with his delegation. We have finalized our trade agreement, opening up the Philippine market to the United States with zero tariffs. However, the Philippines will be subject to a 19% tariff.”
Trump has now announced trade deals with the U.K., Vietnam, and Indonesia. Earlier in July, he issued tariff letters to several countries, including the Philippines, Sri Lanka, Brunei, Iraq, Libya, and Brazil. Additional letters were sent to countries like South Africa, Malaysia, and Laos in the days leading up to this announcement.
During a meeting on July 22, President Donald Trump and Philippines President Ferdinand Marcos Jr. discussed the new trade agreement. Marcos is the first head of state from the Association of Southeast Asian Nations (ASEAN) to visit the White House during Trump’s second term. Trump informed Marcos of a 20% tariff on imports from the Philippines, an increase from the earlier announced 17% in April.
According to the Office of the U.S. Trade Representative, the U.S. goods trade deficit with the Philippines in 2024 was $4.9 billion, showing a 21.8% rise from the previous year. Notable U.S. exports to the Philippines include agricultural products, machinery, cereals, and materials used in semiconductor and transport equipment manufacturing.
The reciprocal tariffs, initially named “Liberation Day” tariffs, were introduced on April 2 and temporarily reduced to 10% soon after. Trump granted a 90-day pause for most countries to allow for negotiations on trade deals. While the original deadline was set for July 9, Trump postponed it to commence on Aug. 1.
