The United States agreed to reduce the tariff imposed on the Philippines by 19%, following the government's decision to open its market to the world's largest economy.
This agreement was held after the visit of President Ferdinand Marcos Jr., to US President Donal Trump, on Tuesday.
In a post, Trump said that the Philippines "is going open market with the United States with zero tariffs," yet Marcos further clarified that certain products like automobiles are the ones being imposed.
“There were certain markets that they asked to be opened that are presently not opened... like automobiles. We will open that market and no longer charge tariffs on that,” President Marcos said.
The Philippines will continue to apply high tariffs on finished automobiles and motorcycles, according to the US Office of the Trade Representative.
Currently, the PH government imposes 30% tariff on automobiles (that can set up to automobiles), and 20% tariff on imported buses and trucks.
It is noted that Marcos signed his Executive Order No.12, which removes tariffs for electric vehicles, while imported hybrid EVs are faced between 1-5%.
Still, the Philippines will continue its imports on US soy, wheat and medicine.
Meanwhile, President Marcos Jr. called the tariff reduction a "significant achievement."
“One percent might be a very small concession, however when you put it in real terms, it is a significant achievement,” he said.
The United States is the Philippines' top export market, but the US is only the 6th largest import source for the Philippines.
As of now, total trade between the US and Philippines in 2024 was P23.5 billion, with a US having a deficit of $4.9 billion.
