Marcos gets US tariff cut by 1%

US exports get zero tariff

- Alexis Romero

After a series of negotiations capped by President Marcos' official visit to the United States, the Trump administration has agreed to cut by one percent its 20 percent tariff being readied for Philippine exports to the U.S., in a deal that will also remove the import duties on American automobiles and increase Philippine purchases of certain U.S. goods.

The 19 percent duty to be levied on Philippine exports starting August is still higher than the initial 17 percent announced by U.S. President Donald Trump when he launched what he called the "Liberation Day" tariffs in April.

The new rate is nevertheless the second-lowest in the region, higher only than the 10 percent slapped on Singapore, which has a bilateral free trade agreement with the U.S.

"We concluded our trade deal, whereby the Philippines is going open market with the United States, and zero tariffs. The Philippines will pay a 19 percent tariff," Trump posted on Truth Social after his bilateral meeting with Marcos last Tuesday.

Marcos described the revised rate as a "significant achievement." "Now, one percent might seem like a very small concession. However, when you put it into - in real terms, it is a significant achievement," the President told reporters in Washington before departing for Manila.

"There is more to be spoken about with the United States concerning the tariff rates and our trade deals," he added.

Marcos explained that under the deal, the Philippines will scrap the tariffs on automobile imports from the US. It is unclear if more US products are covered by the zero tariff.

"Because we have a tariff on American automobiles, we will open that market and no longer charge tariffs on that," he said.

The Philippines will also buy more US soy products, wheat and pharmaceuticals, a setup that - according to Marcos would lower the medicine prices in the country.

Impact downplayed