A high-level Philippine delegation is set to fly to Washington D.C. next week to renegotiate the steep 20 percent tariff the United States will begin imposing on Philippine goods starting August 1.
The delegation will be led by Frederick Go, Special Assistant to the President for Investment and Economic Affairs and chair of the Economic Development Committee. He will be joined by Trade Secretary Cristina Roque and Ceferino Rodolfo, undersecretary of the Department of Trade and Industry and managing head of the Board of Investments.
The mission comes in response to a July 9 letter from US President Donald Trump to President Ferdinand Marcos Jr., informing Manila that the previously announced 17-percent tariff on Philippine exports will be raised to 20 percent. The increase is part of a broader recalibration of US trade policy affecting 20 countries, including key US allies such as Japan, South Korea, Indonesia, Bangladesh, and Thailand.
Trump’s letter cited the Philippines’ “tariff and non-tariff policies and trade barriers” as contributing to what he called “unsustainable trade deficits” that threaten the US economy and national security.
“These tariffs may be modified, upward or downward, depending on our relationship with your country,” Trump wrote. He added that the US would be willing to “reconsider an adjustment” if the Philippines opens its “closed trading markets” and removes restrictive trade practices.
Philippine Ambassador to the US Jose Manuel Romualdez confirmed that Manila will formally request a review of the tariff hike, noting that the talks aim to secure a more favorable deal for Philippine exporters.
Trump warned, however, that any retaliatory move from Manila would be met with a proportional increase. “If for any reason you decide to raise your tariffs, then, whatever the number you choose to raise them by, will be added onto the 20 percent that we charge,” he said.
Trump also hinted at an alternative: Filipino companies manufacturing directly within the US would be exempt from the tariff.
The upcoming negotiations are seen as crucial for mitigating the potential economic impact of the new tariffs on Philippine exporters and preserving strong trade ties between the two long-time allies.
