Marcos says reduction in US tariff on PH goods 'significant'
WASHINGTON —President Ferdinand Marcos Jr. has confirmed the announcement of US President Donald Trump that the tariff rate for goods coming from the Philippines has been reduced from 20 percent to 19 percent, calling it "a significant achievement."
"We managed to bring down 20 percent tariff rate for the Philippines to 19. One percent might seem like a very small concession. However, if you put it into real terms, it is a significant achievement," he told reporters after meeting Trump at the White House.
Marcos also clarified that not all goods entering the Philippines from the United States will get a zero tariff.
Marcos issued the remark following Trump's social media post that 'the Philippines is going open market with the United States adding that the US is getting 'zero tariffs.'
The Philippine leader said the zero tariff will only apply to certain markets.
'There were certain markets that they asked to be opened. One of the major areas is automobiles because we have a tariff on American automobiles. We will open that market,' he said.
The Philippines will also increase its imports from the US, he said.
'The other side of that is increased importation from the US for soy products, wheat products, and pharmaceuticals, medicines para mas gawing mura ang gamot natin (to reduce the costs of our medicines),' Marcos added.
When asked if the deal was more favorable to the US, Marcos replied, 'That's how negotiations go. Why the tariff went up from P17 to P20 is internal to the US government."
Marcos, the first Southeast Asian leader to meet Trump in his second term, told reporters at the start of the meeting that the United States was his country's "strongest, closest, most reliable ally."
The 19% tariff rate was just below the 20% threatened by Trump earlier this month, but above the 17% rate set in April when Trump announced what he called reciprocal tariff rates for dozens of countries. It matches the 19% rate announced for Indonesia and bests Vietnam's slightly higher rate of 20%.
The United States had a deficit of nearly $5 billion with the Philippines last year on bilateral goods trade of $23.5 billion.
Trump said the two countries did "a lot of business" with each other, adding the "very big numbers" in the trade agreement would only grow larger. —With a report from Reuters/LDF, GMA Integrated News
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
GMA Network
7 hours ago
- GMA Network
Thai-Cambodian fighting extends into third day, Malaysia urges ceasefire
People gather to receive water supplies donated at Batthkao Primary School camp, amid ongoing clashes on the Thai-Cambodian border that extended to the third day, with new flashpoints emerging as both sides seek diplomatic support and urge for negotiations, in Oddar Meanchey province, Cambodia, July 26, 2025. REUTERS/Soveit Yarn SISAKET, Thailand - Fighting on the Thai-Cambodian border extended into a third day and new flashpoints emerged on Saturday as both sides said they had acted in self-defense in the border dispute and called on the other to cease fighting and start negotiations. More than 30 people have been killed and more than 130,000 people displaced in the worst fighting between the Southeast Asian neighbors in 13 years. There were clashes early on Saturday, both sides said, in the neighboring Thai coastal province of Trat and Cambodia's Pursat Province early, a new front more than 100 km (60 miles) from other conflict points along the long-contested border. The two countries have faced off since the killing of a Cambodian soldier late in May during a brief skirmish. Troops on both sides of the border were reinforced amid a full-blown diplomatic crisis that brought Thailand's fragile coalition government to the brink of collapse. As of Saturday, Thailand said seven soldiers and 13 civilians had been killed in the clashes, while in Cambodia five soldiers and eight civilians had been killed, said Defense Ministry spokesperson Maly Socheata. In the Thai border province of Sisaket, a university compound has been converted into temporary accommodation, where a volunteer said more than 5,000 people were staying. Samrong Khamduang said she left her farm, about 10 km from the border, when fighting broke out on Thursday. The 51-year-old's husband stayed behind to look after livestock. "We got so scared with the sound of artillery," she said. "But my husband stayed back and now we lost the connection. I couldn't call him. I don't know what is happening back there." In Kuala Lumpur, Malaysian Prime Minister Anwar Ibrahim, the chair of the ASEAN regional bloc, said he would continue to push a ceasefire proposal. Cambodia has backed Anwar's plan, while Thailand has said it agreed with it in principle. "There is still some exchange of fire," Anwar said, according to state news agency Bernama. He said he had asked his foreign minister "to liaise with the respective foreign ministries and, if possible, I will continue engaging with them myself – at least to halt the fighting". Security Council meeting Thailand's ambassador to the United Nations told a Security Council meeting on Friday that soldiers had been injured by newly planted land mines in Thai territory on two occasions since mid-July - claims Cambodia has strongly denied - and said Cambodia had then launched attacks on Thursday morning. "Thailand urges Cambodia to immediately cease all hostilities and acts of aggression, and resume dialogue in good faith," Cherdchai Chaivaivid told the council in remarks released to media. Cambodia's defense ministry said Thailand had launched "a deliberate, unprovoked, and unlawful military attack" and was mobilizing troops and military equipment on the border. "These deliberate military preparations reveal Thailand's intent to expand its aggression and further violate Cambodia's sovereignty," the ministry said in a statement on Saturday. Cambodia called for the international community to "condemn Thailand's aggression in the strongest terms" and to prevent an expansion of its military activities, while Bangkok reiterated it wanted to resolve the dispute bilaterally. Thailand and Cambodia have bickered for decades over jurisdiction of various undemarcated points along their 817-km (508-mile) land border, with ownership of the ancient Hindu temples Ta Moan Thom and the 11th century Preah Vihear central to the disputes. Preah Vihear was awarded to Cambodia by the International Court of Justice in 1962, but tension escalated in 2008 after Cambodia attempted to list it as a UNESCO World Heritage site. That led to skirmishes over several years and at least a dozen deaths. Cambodia in June said it had asked the court to resolve its disputes with Thailand, which says it has never recognized the court's jurisdiction and prefers a bilateral approach. — Reuters
GMA Network
7 hours ago
- GMA Network
GMA Integrated News gears up for extensive multi-platform coverage of State of the Nation Address 2025
On July 28, GMA Integrated News will deliver its comprehensive multi-platform coverage of Philippine President Ferdinand Marcos Jr.'s (PBBM) fourth State of the Nation Address (SONA), reaffirming its commitment to 'Mas malaking misyon, mas malawak na paglilingkod sa bayan!' Titled "State of the Nation Address 2025: The GMA Integrated News Special Coverage," it will be anchored by award-winning broadcast journalists Pia Arcangel and Atom Araullo. It will air live on GMA, GTV and will also be available on radio, online, and social media platforms. As the 'News Authority ng Filipino,' expect GMA Integrated News to provide the public with unparalleled, comprehensive updates and in-depth reports in the days leading to PBBM's SONA on Monday. Spearheading the coverage is GMA's flagship newscast, 24 Oras, offering a comprehensive report of the speech's highlights and a compelling series of special reports. Unang Hirit's Unang Balita will kick off the morning with an essential overview and anticipation of PBBM's report to the Filipino people. Late-night newscast Saksi, and GTV's Dobol B TV, Balitanghali and State of the Nation will provide continuous updates, rounding up the day's biggest stories and analyses. Online, the live stream of 'State of the Nation Address 2025: The GMA Integrated News Special Coverage' will be available on and GMA Integrated News' official accounts on YouTube, Facebook, and TikTok for bite-sized updates. Viewers can also visit GMA News Online for a comprehensive coverage of SONA 2025 – from pre-SONA special reports on the economy, health, security, agriculture, infrastructure, and education to PBBM's speech, reactions, and rally coverages. Netizens may download the GMA News Online app in the Apple App Store and Google Play Store for a blow-by-blow live blog and end-of-day summary. Across Luzon, Visayas, and Mindanao, GMA Regional TV (RTV) is geared to ensure viewers remain updated thru its flagship local newscasts: One North Central Luzon, Balitang Bisdak, One Western Visayas, and One Mindanao. The SONA 2025 coverage is also accessible via its official website and on GMA RTV's Facebook page and Youtube channel. The Network's flagship AM radio station, Super Radyo DZBB 594khz, and its Super Radyo stations nationwide are primed to deliver the biggest news and latest information via 'Super Radyo DZBB Special Coverage: State of the Nation Address 2025.' Coverage will commence early at 3 a.m. via Markado and will continue until 6:30 p.m. Listeners of Super Radyo Cebu, Super Radyo Davao, Super Radyo Iloilo, Super Radyo Palawan, Super Radyo Gen. Santos, and Super Radyo Kalibo can also access dedicated local coverage from 3:30 p.m. to 5:30 p.m. Further, 'Super Radyo DZBB Special Coverage: State of the Nation Address 2025' will simulcast via Dobol B TV from 5:30 a.m. to 9 a.m. on GTV. Global Pinoys can stay informed during SONA 2025 with live, real-time coverage from GMA Integrated News—airing across GMA Network's international channels: GMA Pinoy TV, GMA Life TV, and GMA News TV.
GMA Network
11 hours ago
- GMA Network
Salceda optimistic about PH entering into FTA with US
Economist Joey Salceda on Saturday expressed optimism that the Philippines will enter into a free trade agreement with the United States following President Ferdinand Marcos Jr.'s White House meeting with US President Donald Trump earlier this week. Salceda made the statement after Marcos negotiated a zero tariff plan for some American goods entering the country in exchange for a lower tariff rate for Philippine exports to the US. 'When Marcos said we are offering you zero tariffs, that is an invitation we can do an FTA,' Salceda said at a news forum in Quezon City. The economist added that now that Trump is more open to bilateral trade talks instead of forming multilateral partnerships, 'it is no longer that impossible that we can work out a free trade agreement.' The former lawmaker recalled that the Philippines was not able to join the Obama administration-backed Trans-Pacific Partnership (TPP) since there was a requirement to allow foreign ownership of land, which the Philippine Constitution prohibits. 'So when Marcos said, 'We are offering them zero [tariffs],' he was trying to [persuade] the US administration into a Free Trade Agreement,' Salceda said. Early morning on Wednesday (Philippine time), Trump announced a new 19% tariff rate for Philippine goods entering America. This is lower than the 20% announced in a letter earlier this month but higher than the 17% rate announced last April on what the US president referred to as Liberation Day. The US chief executive initially said the Philippines is going "open market" with the United States with zero tariffs, while the Philippines would pay a 19% tariff. Marcos, however, has since clarified that the zero tariffs on US products would only apply to certain markets, such as automobiles. The President also committed to increasing imports of soy, wheat, and pharmaceuticals from the US. Special Assistant to the President for Investment and Economic Affairs of the Philippines Frederick Go bared that American agri-fisheries commodities, considered 'sensitive' for the local sector, entering the country are not included in the zero tariff scheme offered to the US. Salceda, meanwhile, explained that only 31% of Philippine exports are subject to Trump's 19% tariff, while the rest—such as electronics, wood, metals, fuels, and chemicals—are covered by multiple trade agreements for exemptions. For Salceda, the effective rate was actually 6.3%, in favor of the Philippines. The lawmaker said the Philippines will benefit mostly from an FTA with the US, as it would result in cheaper products and an increase in investments from American firms. 'Definitely, from tariff savings alone there will be higher consumer welfare aside from the creation of jobs from new investments in manufacturing,' he said. Data from the US Trade Representative showed America's goods trade with the Philippines totaled $23.5 billion in 2024. Broken down, the US goods exports to Manila stood at $9.3 billion, while its imports amounted to $14.2 billion, resulting in a trade-in-goods deficit with the Philippines of $4.9 billion in 2024, up 21.8% year-on-year. Meanwhile, data from the Philippine Statistics Authority (PSA) showed the US was the country's top export destination in 2024, accounting for 16.6% or $12.14 billion of the total export receipts of $73.27 billion. — VBL, GMA Integrated News
