Trump's ex-ambassador to the Philippines criticizes the tariff agreement forged between Trump and Marcos
In a historic meeting at the White House on Tuesday, July 22, 2025, Presidents Donald Trump and Ferdinand Marcos Jr. announced a new US-Philippines trade agreement, which includes a 19% tariff on Philippine goods entering the US. This marks a significant change in the trade relationship between the two nations, with potential implications for businesses, workers, and consumers on both sides.
The 19% tariff on Philippine goods places Filipino exporters, particularly those in manufacturing and agriculture, at a disadvantage. With the US being one of the Philippines' largest export markets, this higher tariff could erode profit margins, making Philippine products less price-competitive compared to goods from countries with lower or zero US tariffs.
The impact will vary by industry. Sectors that export heavily to the US, such as electronics, textiles, and processed foods, may have to absorb higher costs, reduce prices, or lose market share. Smaller businesses with less pricing power may be hit hardest, potentially leading to job losses or reduced investment in export-oriented production. Critics argue that the "reciprocal" nature of the deal is nominal, as the US enjoyed a $5 billion trade surplus with the Philippines last year, and the new tariff structure could widen that gap.
The deal also allows zero tariffs on select US products, such as automobiles, soy, wheat, and pharmaceuticals, entering the Philippines. While this may lower prices for these goods, the broader effect on household costs is unclear. Cheaper imported food and medicines could provide some relief, but the positive impact may be offset by downward pressure on wages and employment in export industries.
The disproportionate burden on exporters—many of whom are small and medium enterprises (SMEs)—could exacerbate income inequality. Large, diversified firms may weather the tariff better, while SMEs and their workers face greater vulnerability.
The agreement also signals a shift in Philippine trade policy, aligning more closely with US demands. Trade justice advocates warn this could set a precedent for future negotiations, with the Philippines conceding more than it gains. The deal is also accompanied by pledges of enhanced US-Philippine military cooperation, suggesting trade and security are increasingly intertwined in bilateral relations.
The US-Philippines trade deal has sparked protests from Filipino American and immigrant rights organizations, who voiced opposition to both the increased tariffs and the expansion of US military cooperation in the Philippines. Members of the Filipino American community have emphasized the need for their voices to be part of the conversation, especially when economic policies directly affect families on both sides of the Pacific.
In response, trade leaders like Mariela Fletcher, NaFFAA national chair, and former US Ambassador to the Philippines Harry Thomas Jr. have called for fairer trade policies and deeper sectoral cooperation between the US and the Philippines. They urge the Philippines to press for more robust talks and enact reforms to remain globally competitive.
In conclusion, the 19% US tariff on Philippine goods is likely to strain Filipino exporters, especially SMEs, and could lead to job losses and economic insecurity for working families dependent on export industries. While cheaper US imports may benefit some consumers, the overall economic impact on the Philippines appears skewed toward the US, raising questions about the fairness and long-term sustainability of the deal.
- The new US-Philippines trade agreement, with its 19% tariff on Philippine goods, could impact foreign policy and legislation, potentially leading to criticism about the reciprocal nature of the deal and questions regarding its fairness towards Filipino exporters.
- The policy-and-legislation changes in the trade agreement may have significant implications for businesses, particularly small and medium enterprises (SMEs), as higher tariffs could cause economic insecurity and job losses in export-oriented industries.
- As the US-Philippines trade deal progresses, general news outlets and financial analysts will closely monitor the impact on the trade relationship, with an emphasis on the potential effects on businesses, the economy, and workers in both countries.
