Trump Hosts US's Oldest Pacific Ally Amid Tensions With China
Newsweek AI is in beta. Translations may contain inaccuracies—please refer to the original content.
The leader of the Philippines, the oldest U.S. ally in the Pacific region, aims to win over President Donald Trump in talks this week with an offer of greater economic engagement, including a "mutually beneficial" trade deal, to head off a looming 20-percent tariff on Philippine goods.
President Ferdinand Marcos Jr., who arrived in the United States on Sunday and is due to meet Trump on Tuesday, is staunchly pro-American and has made U.S. ties a priority since he was elected in 2022, replacing a predecessor who spurned the U.S. in favor of closer relations with China.
Why It Matters
The United States and the Philippines have cooperated closely on defense for decades, based on a 1951 Mutual Defense Treaty. The former U.S. colony would be crucial for the U.S. military in the event of a confrontation with China over Taiwan.
Under Marcos, Philippine forces have been trying the push back against China's expansive claims in the disputed South China Sea. Philippine efforts have been met with Chinese blockades, ramming and water cannon attacks that last year injured several Philippine service members.
The United States last year set out funding of $500 million for the Philippines' military and coast guard in a show of support in the face of Chinese actions in disputed waters.
China accused the U.S. of creating tension and inciting confrontation with its support for the Philippines, which now hosts at least two types of U.S. missile systems on its territory.
Philippine President Ferdinand Marcos Jr. (L) and U.S. Defense Secretary Pete Hegseth pose during Hegseth's visit to Malacanang Palace on March 28, 2025, in the Philippine capital, Manila. Marcos will meet President Donald Trump on...
Philippine President Ferdinand Marcos Jr. (L) and U.S. Defense Secretary Pete Hegseth pose during Hegseth's visit to Malacanang Palace on March 28, 2025, in the Philippine capital, Manila. Marcos will meet President Donald Trump on Tuesday to discuss tariffs and security. MoreWhat To Know
Marcos, the son of U.S.-backed dictator Ferdinand Marcos, said he would be offering Trump exclusive economic benefits.
"My top priority for this visit is to push for greater economic engagement, particularly through trade and investment between the Philippines and the United States," Marcos said before his departure.
"I intend to convey to President Trump and his Cabinet officials that the Philippines is ready to negotiate a bilateral trade deal that will ensure strong, mutually beneficial and future-oriented collaborations that only the United States and the Philippines will be able to take advantage of," he said.
In a July 9 letter to Marcos, Trump said the 20-percent tariff on goods from the Philippines was necessary to address what he said was a "far from reciprocal" trade relationship.
Marcos said he expected his talks with Trump to also focus on security and defense.
Under a 2014 deal, called the Enhanced Defence Cooperation Agreement, or EDCA, the U.S. military has access to Philippine bases and sites for joint training and for facilities such as runways, fuel storage and troop housing. The agreement was expanded in 2023 to allow the United States access to nine locations, up from five before.
Manila has not explicitly said whether these would be available for use in a U.S. defense of Taiwan, but leaders including Marcos previously said the sites cannot be used to launch attacks.
What People Are Saying
Ferdinand Marcos Jr., president of the Philippines, in a public statement, said: "We will see how much progress we can make when it comes to the negotiations with the United States concerning the changes that we would like to institute so as to be able to alleviate the effects of a very severe tariff schedule on the Philippines."
Donald Trump, U.S. president, in a July 9 letter to Marcos, wrote: "Please understand that the 20 percent number is far less than what is needed to eliminate the trade deficit disparity that we have with your country."
What Happens Next
The two leaders will meet at the White House on Tuesday, and any agreement struck over two-way trade is expected to reflect the Philippines' growing geopolitical importance to the United States, too.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Los Angeles Times
14 minutes ago
- Los Angeles Times
Hong Kong police offer rewards for tips leading to the arrest of 19 overseas activists
HONG KONG — Hong Kong police announced rewards for information leading to the arrest of 19 overseas-based activists for their roles in what they called a subversive organization abroad, accusing them of violating a national security law imposed by Beijing. Police said in a statement Friday that the group, Hong Kong Parliament, aimed to promote self-determination and establish a 'Hong Kong constitution,' alleging it was using illegal means to overthrow and undermine China's fundamental system or usurp the institutions in power in Hong Kong or Beijing. At the request of the police, the city's court issued arrest warrants for activists Elmer Yuen, Johnny Fok, Tony Choi, Victor Ho, Keung Ka-wai and 14 others. They are alleged to have organized or participated in an election abroad for the Hong Kong Parliament, as well as setting up or becoming members of the group. According to a Facebook statement by the group on June 30, its election drew some 15,700 valid votes through mobile app and online voting systems. It said the candidates and elected members came from various regions, including Taiwan, Thailand, Australia, the U.S., Canada and Britain. While the group calls itself Hong Kong Parliament, its electoral organizing committee was founded in Canada and its influence is limited. Police already offered 1 million Hong Kong dollars, or about $127,400, for information leading to the arrest of Yuen, Ho, Fok and Choi when previous arrest warrants were issued against them. For the other 15, rewards of 200,000 Hong Kong dollars were offered, and residents were urged to provide information about the case or the people. 'The investigation is still ongoing. If necessary, police will offer bounties to hunt down more suspects in the case,' police said. They also called on the wanted activists to stop their activities, saying that they hoped they 'will take this opportunity to return to Hong Kong and turn themselves in, rather than making more mistakes.' Yuen said in a Facebook Live broadcast that the election was not quite successful in drawing active participation, and that the police campaign would help the group rally support for the resistance movement. 'It helps us with a lot of advertising,' Yuen said. During the live chat with Yuen, Sasha Gong, another activist targeted by the bounties, accused Hong Kong of becoming a police state. She said she is a U.S. citizen and would report her case to the American authorities and lawmakers. Over the last two years, Hong Kong authorities have issued arrest warrants for various activists based overseas, including former pro-democracy lawmakers Nathan Law and Ted Hui. Authorities also canceled the passports of some of them under a recent security law introduced to the city last year. The moves against overseas-based activists have drawn criticism from foreign governments, especially given the former British colony was promised that its Western-style civil liberties and semi-autonomy would be kept intact for at least 50 years when it returned to Chinese rule in 1997. U.K. Foreign Secretary David Lammy and Home Secretary Yvette Cooper said in a joint statement that the warrants and bounties on people living in Britain are 'another example of transnational repression,' and that the act encourages reckless behavior on U.K. soil. In March, the United States sanctioned six Chinese and Hong Kong officials who it alleged were involved in 'transnational repression' and acts that threaten to further erode the city's autonomy. Beijing and Hong Kong contend that the national security laws were necessary for the city's stability. Hong Kong police have maintained that the Beijing-imposed law applies to permanent residents in Hong Kong who violate it abroad. In retaliation for the U.S. move, China in April said it would sanction American officials, lawmakers and leaders of nongovernmental organizations who it says have 'performed poorly' on Hong Kong issues. Leung writes for the Associated Press.
Los Angeles Times
14 minutes ago
- Los Angeles Times
Judge dismisses Trump administration lawsuit against Chicago ‘sanctuary' laws
CHICAGO — A judge in Illinois dismissed a Trump administration lawsuit Friday that sought to disrupt limits Chicago imposes on cooperation between federal immigration agents and local police. The lawsuit, filed in February, alleged that so-called sanctuary laws in the nation's third-largest city 'thwart' federal efforts to enforce immigration laws. It argued that local laws run counter to federal laws by restricting 'local governments from sharing immigration information with federal law enforcement officials' and preventing immigration agents from identifying 'individuals who may be subject to removal.' Judge Lindsay Jenkins of the Northern District of Illinois granted the defendants' motion for dismissal. Chicago Mayor Brandon Johnson said that he was pleased with the decision and that the city is safer when police focus on the needs of Chicagoans. 'This ruling affirms what we have long known: that Chicago's Welcoming City Ordinance is lawful and supports public safety. The City cannot be compelled to cooperate with the Trump Administration's reckless and inhumane immigration agenda,' he said in a statement. Gov. JB Pritzker, a Democrat, welcomed the ruling, saying in a social media post, 'Illinois just beat the Trump Administration in federal court.' The Justice Department and the Department of Homeland Security and did not immediately respond to messages seeking comment. The administration has filed a series of lawsuits targeting state or city policies it sees as interfering with immigration enforcement, including those in Los Angeles, New York City, Denver and Rochester, N.Y. It sued four New Jersey cities in May. Heavily Democratic Chicago has been a sanctuary city for decades and has beefed up its laws several times, including during President Trump's first term in 2017. That same year, then-Gov. Bruce Rauner, a Republican, signed more statewide sanctuary protections into law, putting him at odds with his party. There is no official definition for sanctuary policies or sanctuary cities. The terms generally describe limits on local cooperation with Immigration and Customs Enforcement. ICE enforces U.S. immigration laws nationwide but sometimes seeks state and local help.
Business Insider
23 minutes ago
- Business Insider
‘Margins Could Get Worse,' Warns Top Analyst about Alibaba Stock (BABA) Ahead of Q1 Earnings
Chinese e-commerce giant Alibaba (BABA) is set to report its Q1 FY26 earnings next month. In a new report, Mizuho's Top analyst, Jason Helfstein, lowered his price target on Alibaba stock from $160 to $149, pointing to growing concerns around profit margins. According to him, rising competition in China's local commerce sector, especially in food delivery and instant retail, is beginning to hurt the company's bottom line. Elevate Your Investing Strategy: Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence. Analyst's Views on Alibaba Stock Helfstein, a four-star analyst, said that this quarter marked the first clear sign of margin pressure for Alibaba, driven by its push to stay competitive in local commerce. Mizuho expects a sharp drop in margins in Q1 compared to the previous quarter. Looking ahead, the analyst warned that this margin strain could continue through the rest of 2025 and into 2026 unless new rules are introduced to ease competitive pressure. In response, Mizuho slashed its June-quarter EBITDA forecast from 55 billion RMB to 45 billion RMB. The firm also lowered its FY27 EBITDA estimate to RMB231 billion, reflecting Alibaba's push to protect market share through heavy subsidies. Earlier this month, the company announced a 50 billion yuan ($7 billion) subsidy program via its Taobao unit. The initiative will support food delivery and online retail services as Alibaba tries to fend off growing competition from (JD), PDD Holdings (PDD), and Meituan. Nevertheless, the analyst remains confident in Alibaba's long-term outlook and maintained an Outperform rating on the stock. He noted that consumer demand stayed strong during the June quarter, helped by promotional events and smartphone trade-in offers. Is Alibaba Stock a Good Buy Right Now? Analysts remain highly bullish about Alibaba's stock trajectory. With 14 Buy ratings and one Hold rating, BABA stock commands a Strong Buy consensus rating on TipRanks. Also, the average Alibaba price target of $151.81 implies about 25.31% upside potential from current levels.
