Agri sector braces for Trump deal

The agriculture sector is still awaiting the final details of the Philippines' trade agreement with the United States (US), following President Ferdinand Marcos Jr.'s offer to increase imports of agricultural goods from the world's number one economy as part of concessions to reduce the country's tariff rate from 20 percent to 19 percent.

- BY DEXTER BARRO II

Department of Agriculture (DA) Secretary Francisco Tiu Laurel said it is too early to tell how this would impact the domestic industry and the country's agricultural exports.

"Whether the Philippine agriculture sector will gain or not from this trade deal with the US remains to be seen," he said in a statement.

US President Donald Trump announced in a social media post after his meeting with President Marcos at the White House that the tariffs imposed on Philippine goods will now stand at 19 percent.

The new tariff rate is one percentage point (ppt) lower than the 20 percent Trump issued earlier this month.

It is also slightly higher than the 17-percent rate announced in April as part of the so-called reciprocal tariffs against the majority of the US' trading partners.

Trump views these tariffs as a way to "correct" the US' trade deficits, which he claims are a "major threat" to the American economy and national security.

Data from the Office of the US Trade Representative (USTR) showed the US' goods trade deficit with the Philippines reached $4.9 billion in 2024, meaning it imported more goods from the Philippines than it exported to the country.

Last year, America's total goods trade with the Philippines amounted to an estimated $23.5 billion.