- U.S. to impose 20% tariff on Philippine exports from Aug 1.
- Manila pushes for a bilateral or free trade agreement with U.S.
- U.S. remains top export market, accounting for 16% of exports.
Officials noted on Thursday that the Philippines voiced concerns about the United States' decision to impose a 20% tariff on Philippine exports, but they remain committed to continuing trade discussions.
Economic Affairs Secretary Frederick Go stated that Manila is continuing to advocate for a thorough bilateral agreement, possibly a free trade agreement (FTA), to lower trade barriers and secure long-term access to U.S. markets, according to News.Az and Reuters.
“We remain committed to continuing negotiations with the U.S. in good faith,” Go told reporters. “We aim for a comprehensive economic agreement, or if possible, an FTA.”
The tariff, which will be implemented on August 1, has led Philippine officials to arrange discussions in Washington next week aiming to achieve more advantageous conditions.
Philippine Ambassador to the U.S. Jose Manuel Romualdez supported Go's comments, stating that Manila would advocate for a reduction in the tariff rate. “We are still planning to negotiate that down,” Romualdez stated in a message.
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The Philippines' leading export destination is the U.S., which represents almost 16% of overall exports during the initial five months of 2025.
In 2024, bilateral trade in goods between the countries totaled $23.5 billion. U.S. imports from the Philippines increased by 6.9% to $14.2 billion, whereas U.S. exports only grew by 0.4% to $9.3 billion, resulting in a trade deficit of $4.9 billion, which is a 21.8% rise from 2023.
Despite the tariff challenges, Go stated that the Philippines will persist in carrying out economic reforms to boost competitiveness and broaden international trade partnerships.