💥 Deal of the decade? Trump slaps 19% tariff on Philippines—U.S. exports get free pass

A new trade agreement between the United States and the Philippines is making headlines after President Donald Trump announced the details following a high-level meeting at the White House with Philippine President Ferdinand Marcos Jr. According to Trump, the U.S. will apply a 19% tariff on goods coming from the Philippines, while American products will enter the Philippine market tariff-free.

This announcement, made via Trump’s Truth Social account, marks a significant shift in the economic relationship between the two long-standing treaty allies. Trump described the meeting as “beautiful” and called Marcos a “very good and tough negotiator.” The deal also signals stronger cooperation not just in trade but in military efforts as well.

Major Deal Shakes Up U.S.-Philippine Trade Terms

Before this agreement, Trump had warned that a much higher tariff could be coming as early as August 1. However, after discussions with Marcos, he settled on a 19% rate for Philippine exports. In return, U.S. companies will enjoy zero import taxes when selling goods to the Philippines.

The Philippine government had previously hinted at offering lower or zero tariffs on American imports to help secure a deal. Though further specifics are still unclear, Trump’s announcement gives a glimpse into how both sides are trying to reinforce economic ties.

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Marcos’ visit to the White House is part of a three-day trip to the United States. It’s also the first visit by a Southeast Asian leader to meet with Trump during his second term in office. Both leaders emphasized the strength of the U.S.-Philippine alliance, especially as tensions in the Asia-Pacific region grow more complex.

Marcos, Rubio, and Hegseth Reinforce Military Cooperation

Beyond trade, the two nations focused heavily on defense and military cooperation. Marcos also met with Secretary of State Marco Rubio and Defense Secretary Pete Hegseth during his trip. At the Pentagon, Hegseth reiterated America’s commitment to “achieving peace through strength,” while Marcos reaffirmed the importance of their mutual defense treaty, especially in light of current threats in the region.

In recent months, the United States and the Philippines have expanded joint military drills and increased U.S. support for modernizing the Philippine armed forces. Marcos expressed gratitude, stating that the assistance is vital “in the face of the threats that our country is facing.”

Tensions in the South China Sea were also at the forefront. This contested region involves overlapping territorial claims by several countries, including the Philippines, China, Vietnam, and Malaysia. The Chinese coast guard has reportedly used water cannons against Filipino vessels, accusing them of entering Chinese waters—claims the Philippines denies.

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China Issues Warning as U.S.-Philippines Alliance Deepens

Following Trump’s announcement, Chinese Foreign Ministry Spokesperson Guo Jiakun said that any agreement between the United States and the Philippines should not harm other countries or lead to greater tension in the region.

Earlier in the year, Hegseth labeled China a growing security concern, noting that the U.S. is now shifting more of its military focus to the Indo-Pacific. Rubio, during the visit, also met with Chinese Foreign Minister Wang Yi in Kuala Lumpur. They agreed to continue diplomatic talks and look for areas of potential cooperation, despite rising competition.

Back in Washington, State Department Spokesperson Tammy Bruce confirmed that Marcos and Rubio discussed stronger economic ties, securing supply chains, and regional stability. Marcos, for his part, underlined that the Philippines maintains an independent foreign policy but sees the United States as its “strongest partner.”

While seated in the Oval Office, Trump praised the relationship and showed public support for Marcos. However, during the press session, Trump also shifted attention to unrelated topics, including political investigations, the 2020 election, and past rivals like Barack Obama and Hillary Clinton.

Still, the key highlight remained: the Philippines will now face a 19% tariff on exports to the U.S., while the U.S. pays zero on its exports to the Philippines. The deal underscores a new phase in U.S.-Philippine relations, with rising cooperation across trade and defense.