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
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