Manila's Priority to Keep Trump Close as it Accepts Lackluster Deal

Outcome not what it had hoped for as tariff agreement comes at a cost

- Mara Cepeda

MANILA - Philippine President Ferdinand Marcos Jr flew to Washington on July 20, hoping to turn warm diplomatic ties with the US into tangible economic gains.

But he is returning to Manila with only a modest concession: A cut in the reciprocal tariff rate on Philippine exports to the US from 20 per cent to 19 per cent.

In exchange, the Philippines has agreed to remove tariffs on key American goods, including cars.

It was not the outcome Manila had hoped for.

The new rate is still higher than the 17 per cent announced in April by US President Donald Trump, and analysts say it spotlights the Philippines' limited bargaining power when dealing with an unpredictable but transactional US partner.

Philippine trade negotiators had initially aimed to secure a free trade agreement or a bilateral comprehensive economic partnership deal.

"Well, that's how negotiations go," Mr Marcos told reporters hours after Mr Trump announced the revised tariff rate on his Truth Social platform.

"When we arrived here in Washington, the tariff rate was 20 per cent... so we tried very hard to see what we can do," he added, referring to the 1 percentage point decrease.

Mr Marcos confirmed the Philippines would open up previously protected sectors, including car imports from the US.

Other American goods set to receive zero tariffs are still being determined.

The Philippines also committed to buying more US products such as soya beans, wheat and medication.