The United States has finalized a trade agreement with the Philippines, US President Donald Trump announced on Tuesday. As part of the deal, the US will reduce tariffs on imports from the Southeast Asian nation to 19 percent.
"We concluded our Trade Deal, whereby The Philippines is going OPEN MARKET with the United States," Trump said in a post on his Truth Social platform after hosting Philippine President Ferdinand Marcos Jr. at the White House.
The Philippines, a former US colony and longtime ally, was among countries confronted by Trump with letters this month warning of 20 percent tariffs on all their goods coming into the United States as of August 1 -- up from a previous threat of 17 percent.
The trade rift came despite increasingly close defense relations between the United States and the Philippines, which has seen high tensions with China.
The United States last year under Biden deployed ground-launched missiles in the Philippines.
Trump eyes China visit
China and the Philippines have engaged in a series of confrontations in the contested waters, which Beijing claims almost entirely, despite an international ruling that the assertion has no legal basis.
Trump has frequently questioned Western allies over their military spending, pondering why the United States should defend them in the NATO alliance.
He has voiced fewer doubts about the Philippines. Both Defense Secretary Pete Hegseth and Secretary of State Marco Rubio in meetings with Marcos on Monday vowed to honor the 1951 Mutual Defense Treaty with the Southeast Asian nation.
The Trump administration has identified China as the top US adversary but Trump himself has also boasted of his relationship with Chinese President Xi Jinping.
Speaking alongside Marcos, Trump said he would "probably" visit China at Xi's invitation "in the not-too-distant future."
He said of Marcos, "I don't mind if he gets along with China very well, because we're getting along with China very well."
Trump at the same time said the Philippines had been "maybe tilting toward China" and "we untilted it very, very quickly."
"I just don't think that would have been good for you," Trump said of the former tilt.
Trump credited his own efforts and faulted Biden, although he appeared to be referring to a shift in the Philippines since the 2022 election of Marcos, who also worked closely with the Biden administration.
Marcos's predecessor Rodrigo Duterte had flirted with closer relations with China and bristled at US criticism over human rights under Biden and Obama.
Duterte is facing charges of crimes against humanity at the International Criminal Court over a sweeping campaign against drug users and dealers that rights groups say killed thousands.
Discover the latest Business News, Sensex, and Nifty updates. Obtain Personal Finance insights, tax queries, and expert opinions on Moneycontrol or download the Moneycontrol App to stay updated!