U.S. President Donald Trump and President Ferdinand Marcos Jr. concluded a trade agreement during Marcos’s visit to the White House. The trade deal establishes a 19% tariff on Philippine goods entering the U.S., slightly below the 20% previously threatened by Trump. In exchange, U.S. goods, particularly automobiles, will enter the Philippines tariff-free.
Marcos’ Official U.S. Visit
President Marcos Jr. embarked on a three-day official visit to the United States from July 20 to July 22. This marked his first meeting with U.S. President Donald Trump since his re-election. During the visit, Marcos engaged in discussions with key U.S. officials, including Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, and CIA Director John Ratcliffe.
On July 22 Marcos and Trump convened at the Oval Office in the White House, where they finalized a trade agreement that included a 19% tariff on Philippine imports to the U.S. and zero tariffs for U.S. goods entering the Philippines. Trump praised Marcos as a “very good and tough negotiator”.
Philippine Lawmaker’s Reaction to the Trade Deal
While the agreement has been hailed as a step forward in strengthening bilateral trade relations, some lawmakers have expressed concerns. They argue that the new tariff rate is a reduction from the initial 20% threat but remains higher than the 17% rate set in April 2025 and is much higher than the zero-tariff status they had hoped for. A 19% rate could potentially impact Philippine exporters.
China and USA Trade Negotiations
U.S. Treasury Secretary Scott Bessent announced that U.S. and Chinese officials would meet in Stockholm next week to discuss extending the deadline for negotiating a trade deal. Bessent emphasized the importance of rebalancing the U.S.-China trade relationship, focusing on shifting China’s economy from manufacturing to consumption. He also mentioned bipartisan support in the U.S. Senate for imposing 100% tariffs on countries, including China and India, that continue to purchase Russian oil.
Trump’s Trade Wars
The Tariff Deal between the U.S. and the Philippines is just one element of the broader context of the Trade Wars. For years, the U.S. has accused China of using unfair trade practices to gain an advantage over American industries. By undervaluing its currency, China made its exports artificially cheap, which hurt U.S. manufacturers. In addition, the Chinese practice of dumping has made it harder for industries worldwide to compete on equal terms. These issues are central to the U.S. trade strategy, and Trump’s tariffs were meant to correct these imbalances and ensure a level playing field for U.S. businesses.
