US tariff cut a win in exchange for more trade concessions - Marcos

Metro Manila, Philippines - President Ferdinand “Bongbong” Marcos Jr. defended what appears to be a modest tariff concession from the United States, a reduction of one percentage point on Philippine exports, calling it a "significant achievement" in real terms, even as US President Donald Trump proclaimed a sweeping “open market” deal between the two countries.

Fresh from a White House meeting with Trump, Marcos addressed the Filipino media in Washington, D.C. and offered clarity on the trade deal Trump announced on his Truth Social platform, where the former US leader declared, “The Philippines is going OPEN MARKET with the United States, and ZERO Tariffs,” while affirming that Manila will still pay a 19% tariff, a tad lower from the 20% - which was originally 17%.

Marcos confirmed the reduction and elaborated that the “open market” component refers to the Philippines lifting tariffs on selected US products, particularly American automobiles, agricultural goods like soy and wheat, and pharmaceuticals.

“Now, one percent might seem like a very small concession. However, when you put it into real terms, it is a significant achievement,” Marcos told reporters.

He added that negotiations are ongoing and that the new 19% rate would serve as a template for future US -Philippine trade arrangements. The deal, however, raised questions among various sectors, particularly over whether the Philippines was conceding more than it gained, especially since it agreed to zero tariffs on certain US goods while Filipino exports still face nearly a fifth of duties.

“That’s how negotiations go,” Marcos replied when asked about the seeming imbalance. “We came here, when we arrived in Washington, tariff rates were 20. So, we tried very hard… and we managed the one percent decrease.”

Marcos also acknowledged the $4.9 billion trade deficit with the US in favor of the Philippines as of 2024 — a gap that widened by nearly 22% from the previous year. He said the country will work to narrow the deficit by increasing imports from the US, a move that aligns with the new trade framework.

“What really is [needed] is to offset the trade balance deficit that we have, and that is by increasing imports from the United States,” Marcos explained.

Despite concerns over the deal’s fairness, the president highlighted the diplomatic context, noting the US cited the “special relationship” between the two countries in deciding on tariff adjustments at all.

Trump echoed the sentiment during their White House meeting, describing Marcos as a “tough negotiator” and crediting the improvement in bilateral ties to the current leadership.

“It may not sound dramatic, but even one percent can make a big difference,” Marcos said.

Mixed reactions

Back in Manila, however, lawmakers and civil society were far less optimistic.

“Sobra ata tayong dehado. Akala ko ba ‘little brown brothers’ ang turing sa atin ng mga Amerikano? Bakit tila lagi tayong naiisahan sa mga ganitong usapan?” said Senator JV Ejercito, describing the agreement as lopsided.

[Translation: I thought we were their so-called ‘little brown brothers’? Why does it always feel like we’re being outmaneuvered in these talks?]

“Sana ay gawing patas man lang kung tunay na kakampi ang tingin sa atin,” he added.

[Translation: If we are truly seen as allies, the deal should at least be fair.]

Senator Ping Lacson echoed the frustration, calling the outcome a diplomatic failure.

“Nineteen percent vs zero percent tariffs is definitely not the most fair deal between decades-old friends or allies like the United States and the Philippines. If I may add, it is the worst insult that a host can throw at his guest. It is time for us to look for other trade partners,” he said in a statement.

Progressive political party Akbayan issued a scathing rebuke of the agreement and Marcos’ timing, as the country continues to battle flood damage. “Yun na yun?,” it said [Translation: That’s it?]

“That’s all we got in exchange for jetting off while the country was underwater? A one percentage point tariff cut and vague promises? The Filipino people deserve more than platitudes,” said Akbayan president Rafaela David.