Critics warn the new rate, a modest shift from the previous 20 per cent, undermines fair trade and puts Philippine industries at a competitive disadvantage

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President Donald Trump says the United States and the Philippines are “very close to finishing” a big trade deal as he meets with Philippine President Ferdinand Marcos Jr. at the White House.

A 19-percent tariff on Philippine exports to the United States is expected to have minimal impact on economic growth, but potential trade diversion is a concern, according to the Department of Economy,

President Ferdinand Marcos secures a one-percent US tariff cut and defence pledges from US President Donald Trump, but analysts say the deal highlights Manila’s limited leverage and need to diversify.

As the August 1st tariff deadline approaches, President Trump said on social media that the U.S. and the Philippines have reached a trade deal. It comes as the impact of tariffs already in place are becoming more clear as automakers report quarterly earnings.

Philippine President Ferdinand Marcos Jr. listens as US Defense Secretary Pete Hegseth delivers remarks to reporters before a meeting at the Pentagon on July 21, 2025 in Arlington