Trump cuts tariffs on PH to 19%; Manila OKs zero tariffs on US-made cars

WASHINGTON DC, July 23 ------ The United States reduced tariffs imposed against the Philippines by 1 percentage point after Manila agreed to open its market to the world’s largest economy with zero trade dues, US President Donald Trump said following his Oval Office meeting with Philippine President Ferdinand Marcos Jr.

In a social media post, Trump claimed that the Philippines “is going open market with the United States with zero tariffs,” but Marcos Jr. clarified that the zero tariff rate will only be imposed on certain products such as automobiles. “There were certain markets that they asked to be opened that are presently not opened,” the Philippine President told reporters at the Blair House. “Like automobiles. We will open that market and no longer charge tariffs on that,” he said.

The US Office of the Trade Representative earlier noted in one of its reports that the “Philippines continues to apply high tariffs on finished automobiles and motorcycles.” The Philippines imposed a 30 percent tariff on automobiles that can seat up to 10 people, while a 20 percent tariff is imposed on imported buses and trucks. In January 2023, President Ferdinand Marcos Jr. signed his Executive Order No. 12 which eliminates tariffs for electric vehicles, while imported hybrid EVs are slapped with dues between 1 and 5 percent.

SIGNIFICANT ACHIEVEMENT

Marcos Jr. denied that the Philippines may be getting the shorter end of the stick as the 19 percent tariff is still higher than the 17 percent rate imposed in April. “One percent might be a very small concession, however when you put it in real terms, it is a significant achievement,” the Philippine President said. “They told us it (lower tariff) is because of the special relationship between the Philippines and the United States,” he said.

INCREASED IMPORTS FROM THE US

Aside from scrapping the tariffs on automobiles, the Philippines has agreed to buy more products from the United States, Marcos Jr. said. “There will be increased importation from the United States for soy products, wheat products and medicine,” he said, without giving a specific volume. “There are a lot of details that need to be worked out, but so far that is our template the 19 percent,” he said.

As of 2024, the total trade between the traditional allies was pegged at P23.5 billion, but the US logged a deficit of $4.9 billion, a 21.8 percent increase from the deficit in 2023. The US is the Philippines’ top export market in May 2025 with goods amounting to $1.115 billion, according to data from the Philippine Statistics Authority. But in terms of imports, the US only ranks 6th in the Philippines with $647.34 million, far behind the $3.15-billion worth of goods the Southeast Asian country bought from China in May 2025 alone. “There is much more to be spoken about the US concerning the tariff rates and trade deals,” Marcos Jr. said. “I suppose it is a living thing maybe we can go back to this if the markets around the world are able to adjust,” he added.

Trump described Marcos Jr. as a “very tough” negotiator, adding that their first official meeting in the White House “was a beautiful visit.” “It was a great honor to be with the President. He is highly respected in his country as he should be,” the American Chief Executive said. He is also a very good and tough negotiator.”

The 19 percent tariff imposed on the Philippines is seen to be the second lowest in Southeast Asia, next to the 10 percent tariff on Singapore.

Source: news.abs-cbn.com