
Trump agrees to small reduction in Philippine tariffs
Welcoming Marcos to the White House, Trump called him a "very tough negotiator" and said: "We're very close to finishing a trade deal -- a big trade deal, actually."
In a social media post shortly afterward, Trump said that while the Philippines would open up completely to US goods, he would still impose a 19 percent tariff on products from the Southeast Asian country, a major exporter of high-tech items and apparel.
"It was a beautiful visit, and we concluded our Trade Deal, whereby The Philippines is going OPEN MARKET with the United States, and ZERO Tariffs," Trump wrote on his Truth Social platform.
The Philippines was among two dozen economies confronted by Trump with letters this month warning of 20 percent tariffs on all goods coming into the United States as of August 1.
The 19 percent rate is still above the 17 percent threatened by Trump in April, when he threatened sweeping global tariffs.
The trade rift comes despite increasingly close defense relations between the United States and the Philippines, a former US colony and treaty-bound ally that has seen high tensions with China.
The United States last year, under Trump's predecessor Joe Biden, deployed ground-launched missiles in the Philippines.
Washington has also eyed ammunition manufacturing in the Philippines, despite the closure in 1992 of the US naval base at Subic Bay due to heavy public pressure.
"All of what we consider part of the modernization of the Philippine military is really a response to the circumstances that surround the situation in the South China Sea," Marcos said next to Trump.
Trump devoted much of the appearance to attacks on his Democratic predecessors Biden and Barack Obama.
"We are essentially concerned with the defense of our territory and the exercise of our sovereign rights," said Marcos.
"Our strongest, closest, most reliable ally has always been the United States."
- Trump eyes China visit -
China and the Philippines have engaged in a series of confrontations in the contested waters of the South China Sea, which Beijing claims almost entirely, despite an international ruling that the assertion has no legal basis.
Trump has frequently questioned 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 the US president has also boasted of his relationship with Chinese counterpart 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 added 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.
The US president credited himself with the shift, although the turn towards Washington began after the 2022 election of Marcos, before Trump returned to power.
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.
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Bangkok Post
4 hours ago
- Bangkok Post
Adding up the list of Thai concessions
Negotiations with the US that concluded with a 19% tariff on Thai exports were broadly focused on trade concessions. What did Thailand offer to secure the 19% rate? The US reciprocal tariff rate on Thai exports dropped from a threat of 36%, effective starting on Thursday, in exchange for several significant Thai concessions. Thailand proposed eliminating import duties for more than 10,000 items imported from the US (out of roughly 11,000 items in total), mostly consisting of goods that are not produced domestically or are insufficiently produced, such as medical instruments, advanced auto parts, and specialised food products. Thailand also reduced non-tariff barriers, streamlining customs procedures and implementing a "post-clearance audit" system, while simplifying regulations to facilitate US imports. In addition, the country committed to purchase liquefied natural gas from the US, as well as crude oil, ethane, aircraft, and agricultural products that Thailand does not produce or produces insufficiently, such as animal feed corn. The goal is to reduce the trade surplus of more than $35 billion by half within five years. A major focus of the talks was stricter rules of origin, with Thailand adopting more rigorous rules of origin for export products to prevent the country being used to circumvent US tariffs, especially for transshipment of Chinese goods. The US plans to implement its new rules of origin worldwide. The specific details remain unclear, but the US wants to prevent circumvention of import tariffs by third countries. Thailand is also increasing quotas for the import of US corn, while lowering import duties for soybeans. However, Thailand retained tariffs on sensitive products, or those that would impact domestic farmers. In terms of regional security cooperation, Thailand committed to increased efforts, especially regarding de-escalating border tensions with Cambodia. There were no discussions on granting gas concession rights or military base access to the US. The Trump administration said it had concerns over market access, trade imbalances and investment, while Thailand wanted continued protection for its most vital domestic industries.

Bangkok Post
5 hours ago
- Bangkok Post
Tariff of 19% dubbed 'good news'
Despite great relief following the announcement of a 19% US tariff rate on Thai exports on Friday, the business sector remains fraught with concerns, particularly over the plight of Thai small and medium-sized enterprises (SMEs) and the agricultural sector. WAKE-UP CALL Piti Tantakasem, chief executive of TMBThanachart Bank, posted on Friday on his Facebook page that the tariff agreements the US is pursuing globally are reshaping the trade landscape from one based on free trade to a model of conditional trade, with a clear effort to exclude China from international supply chains. In this new scenario, the traditional rules of global trade will no longer apply, he said. Regarding Thailand's agricultural sector, which has long been a tool used in domestic politics, Mr Piti said it faces serious challenges from global powers with fully integrated, high-tech agricultural systems, capable of penetrating even the most entrenched political protections. "If Thailand sees the '19% deal' as a victory and is content with it, this could be 'The Beginning of the End'. But if we take it as a wake-up call to rethink and reform, then this marks 'The New Beginning'," he wrote. Mr Piti emphasised the need for Thailand to re-strategise by shifting the focus of the Board of Investment (BoI). Rather than simply measuring foreign direct investment, the BoI should prioritise building and enhancing national capabilities. He argued that Thailand's manufacturing sector must evolve, from being the "factory of the world" to developing innovative products that are uniquely Thai. Mr Piti urged Thailand to strengthen its domestic supply chains and promote authentic Thai goods to gain a competitive edge in government procurement, meet private sector demand and drive domestic consumption. He also called for clearer distinctions between legitimate businesses and grey-market enterprises, encouraging support for Thai companies that uphold good governance and social responsibility. "This is an opportunity to change, rethink and reform Thailand. This is a new beginning to make Thailand relevant again," said Mr Piti. SUPPORT MEASURES Poj Aramwattananont, chairman of the Thai Chamber of Commerce and the Thai Board of Trade, expressed optimism about Thailand's competitiveness in the region, bolstered by tariff rates now aligned with other Southeast Asian nations. However, he emphasised the urgent need for government measures to support Thai entrepreneurs in adapting to the new US tariff regime. These measures should focus on advancing technology, financing, marketing and trade innovation to help businesses penetrate new markets, said Mr Poj. He also urged Thailand to heed the 40% transshipment rate, warning of penalties if Thai exports are found to violate it. Certain Thai products may face increased scrutiny and Mr Poj called for clearer definitions of regional value content across various product categories. In parallel, he called for the government to formulate strategies to manage rising imports from the US, especially in sectors that may be vulnerable to increased competition. "The chamber believes further negotiations can secure more favourable terms," said Mr Poj. "We hope Team Thailand continues to advocate strongly for the interests of Thai businesses." He also advised exporters to promptly adjust their shipping schedules and cost structures to mitigate the impact of the new tariffs. The private sector stands ready to collaborate with the government, especially in supporting industries likely to be affected by import shifts under evolving regional value chains, said Mr Poj. TOUGH TASKS AHEAD Thai entrepreneurs need to enhance their competitiveness to brace for intensifying competition despite the agreement on a lower tariff rate on Thai exports similar to regional peers, said the Federation of Thai Industries (FTI). While the months-long negotiation with US authorities ended, Thai manufacturers that export to the US need to adapt to the new tariff rules set by the Trump administration. "It is good news amid challenges," said Kriengkrai Thiennukul, chairman of the FTI. The 19% tariff is acceptable because none of the Southeast Asian exporting nations gains an advantage for shipments to the US, he said. However, entrepreneurs with profit margins of less than 10% need to do more homework, said Mr Kriengkrai. "These manufacturers need to reduce costs, increase productivity and talk with their trading partners to avoid passing the financial burden on to consumers," he said. Other companies with high margins should not be significantly affected by the tariffs, said Mr Kriengkrai. Though changes in US policy are expected to disrupt trade, Thai entrepreneurs should take this as an opportunity to lift their competitiveness, he said. One concern is the influx of products redirected to Asian markets due to US tariffs, hampering manufacturers in the region, said an executive in the electrical appliance sector who requested anonymity. Thai manufacturers are advised to adopt more technologies to enhance production processes and reduce costs, said Mr Kriengkrai. "We also need to seek alternative markets other than the US by forging new partnerships," he said. The FTI asked the government to help businesses access financial sources at a time when they face costlier exports. Thai farmers also need help if the government is allowing more imports of US crops in exchange for the 19% tariff rate, said Tanit Sorat, vice-chairman of the Employers' Confederation of Thai Trade and Industry. BURDEN FOR SMES Supree Thongpetch, chairman of the Thai Small and Medium Enterprise Council, which represents 80 member associations, said more than 2 million Thai SMEs that export to the US will face challenges based on the new tariff. He said many of these small businesses rely on online platforms such as eBay and Amazon to sell their products, often avoiding import duties since they typically export in smaller quantities. Their products range from maternity and baby clothing to aroma and spa items. The US currently applies low tariffs or exemptions for certain goods with existing purchase orders. However, the increase to a 19% tariff could put these businesses at a disadvantage as they may struggle with rising costs and lose their competitiveness, said Mr Supree.

Bangkok Post
14 hours ago
- Bangkok Post
Cambodia to nominate Trump for Nobel Peace Prize
PHNOM PENH - Cambodia will nominate US President Donald Trump for the Nobel Peace Prize, its deputy prime minister said on Friday, following his direct intervention in halting the recent border conflict with Thailand. Asked via text message to confirm Cambodia's plan to nominate Trump for the prize, Sun Chanthol responded, 'Yes.' Speaking to reporters earlier in Phnom Penh, Sun Chanthol thanked Trump for bringing peace and said he deserved to be nominated for the prize, the highest-profile international award given to an individual or organisation deemed to have done the most to 'advance fellowship between nations'. Pakistan said in June that it would recommend Trump for the Nobel Peace Prize for his work in helping to resolve a conflict with India, and Israeli Prime Minister Benjamin Netanyahu said last month he had nominated Trump for the award. It was a phone call by Trump last week — and a threat to scrap trade talks if the two countries kept fighting — that broke a deadlock in efforts to end the heaviest fighting between Thailand and Cambodia in over a decade, leading to a ceasefire negotiated in Malaysia on Monday. Following the truce announcement, White House spokeswoman Karoline Leavitt said in a post on X that Trump made it happen. 'Give him the Nobel Peace Prize!' she wrote. At least 43 people have been killed in the intense clashes, which lasted five days and displaced more than 300,000 people on both sides of the border. 'We acknowledge his great efforts for peace,' said Sun Chanthol, also Cambodia's top trade negotiator, adding that his country was also grateful for a reduced tariff rate of 19%. Washington had initially threatened a tariff of 49%, later reducing it to 36%, a level that would have decimated Cambodia's vital garment and footwear sector, the deputy premier told Reuters earlier.