Latest news with #US-Philippines
New Straits Times
15 hours ago
- Business
- New Straits Times
US trade deals raise regional stakes
KUALA LUMPUR: The US' new tariff deals with Japan and the Philippines, could heighten regional competition, but economists say Malaysia still holds firm in key sectors. Malaysia should act swiftly to maintain its edge, they added. On July 22, US President Donald Trump announced a deal with Japan that set tariffs on the nation's imports at 15 per cent, including for autos - by far the biggest component of the trade deficit between the countries. A separate agreement with the Philippines set a 19 per cent rate, the same level as Indonesia agreed to and a percentage point below Vietnam's 20 per cent baseline level, signalling that the bulk of Southeast Asia is likely to get a similar rate. In return, Indonesia removed tariffs on over 99 per cent of US products in exchange, while Japan commits to open markets for US autos, rice and agricultural goods, and to invest US$550 billion into the US. "The US-Japan and US-Philippines deals suggest Washington is rewarding bilateral agreements with tariff relief. "That puts pressure on countries without deals, like Malaysia, to secure similar access or risk being sidelined for future export-led foreign direct investment," SPI Asset Management managing partner Stephen Innes told Business Times. However, Innes emphasised that Malaysia still remains a strong contender in the regional trade landscape. "While sectors such as automotive and final-stage electronics might see shifting investment flows, Malaysia's established role in the semiconductors and E&E supply chain remains a key asset. "Malaysia still offers strong fundamentals (particularly in electronics) but in this environment, trade certainty is a competitive edge. Bilateral talks with the US should now be a priority," he said. Echoing similar sentiments, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the risk of losing the nation's competitiveness is real. Therefore, product differentiation will be crucial for Malaysia to maintain its export strength. "Areas like Halal certification can help Malaysia carve a niche where our products and services remain highly sought after, despite the higher tariffs US consumers might have to pay," he said. On whether Malaysia could lose trade share to Japan or the Philippines in specific sectors like electronics and automotive, Afzanizam pointed out that Malaysia's position in the OSAT (outsourced semiconductor assembly and test) space is already strong. "Malaysia has established its footprint in the OSAT segment of electronics. Given our economies of scale, it may be quite difficult for other countries to replicate our capabilities," he said. Economist Dr Geoffrey Williams said the new tariff deals for Japan, Philippines and before this Indonesia and Vietnam, had put Malaysia at a disadvantage if the 25 per cent reciprocal tariff is maintained. "It will affect trade and FDI because companies will locate FDI to countries with lower US tariffs," he said. Williams said Malaysia's automotive exports are unlikely to be affected, but component manufacturing and certain E&E segments may see gradual changes in investor interest. "It may not affect semiconductors but could affect other electrical and electronics. It will not affect automotive because Malaysia does not export vehicles but it could affect components. "The lesson is clear, Malaysia must go zero-tariff and try to reduce non-tariff barriers to compete. There is only one week left," he said. From a positioning standpoint, Innes said with the Aug 1 tariff wall approaching fast, traders are conditioned to expect last-minute deals - headline-driven repricing that rewards speed over skepticism. "This one hits all the right spots including autos, agriculture, liquefied natural gas and even the promise of future investment. The US$550 billion figure Trump floated may be fuzzy, but the market does not care. "The trade tape was primed, and this was the spark," he added.
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Business Standard
a day ago
- Business
- Business Standard
Trump slaps 19% tariffs on Philippines, Indonesia; US to face zero duties
US President Donald Trump on Tuesday (local time) announced new trade agreements with the Philippines and Indonesia, imposing a 19 per cent tariff on their exports while allowing US goods to enter duty-free. The development follows a White House meeting between Trump and Philippine President Ferdinand Marcos Jr. Trump made the announcement on his social media platform Truth Social. "President Ferdinand Marcos, of the Philippines, is just leaving the White House, with all of his many Representatives. 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. The Philippines will pay a 19% Tariff. In addition, we will work together Militarily [sic]," he said. Marcos termed the deal a "significant achievement' for Manila and also said the Philippines will increase imports of soy and wheat products as well as medicines from the US, Bloomberg reported. US-Philippines deficit According to the US government data, in 2024, Washington had a trade deficit of $4.9 billion with Manila, with total trade at $23.5 billion. Ahead of the meeting with the Trump administration, Marcos' government indicated that they were willing to offer zero tariffs on some US goods, reported the Associated Press. This marked a shift in the stance of the Marcos government, which previously said it could not offer a zero tariff to Washington, like Vietnam and Indonesia, claiming that it would hurt domestic businesses. Trump signs deal with Indonesia In a separate post on Truth Social, Trump announced a deal with Indonesia, bringing down their tariff rate from 32 per cent to 19 per cent. "It is my Great Honor to announce our Trade Agreement with the Republic of Indonesia, as represented by their Highly Respected President, Prabowo Subianto. It is agreed that Indonesia will be Open Market to American Industrial and Tech Products, and Agricultural Goods, by eliminating 99% of their Tariff Barriers [sic]," he said. He also announced that Washington will sell American-made goods to Indonesia at zero tariff rate. "In addition, Indonesia will supply the United States with their precious Critical Minerals, as well as sign BIG Deals, worth Tens of Billions of Dollars, to purchase Boeing Aircraft, American Farm products, and American Energy. This Deal is a HUGE WIN for our Automakers, Tech Companies, Workers, Farmers, Ranchers, and Manufacturers", Trump noted. The US had a trade imbalance of $17.9 billion with Indonesia, reported the Associated Press. Trump sends out tariff letters As the 90-day deadline ended on July 9, the Trump administration started sending out letters to trading partners, announcing to them new tariff rates, which would come into effect on August 1. He previously sent out letters to Japan and South Korea, charging both allies with 25 per cent tariffs. Soon after, he sent out letters to 12 other countries, including Indonesia, which was threatened with a 32 per cent tariff.
Mint
2 days ago
- Business
- Mint
Trump teases ‘big trade deal' as he welcomes Philippine President Marcos to White House
US President Donald Trump hosted Philippine President Ferdinand Marcos Jr. at the White House on Tuesday (July 22), as the United States and the Philippines aim to deepen strategic and economic cooperation amid growing regional tensions, particularly with China. Marcos became the first Southeast Asian leader to visit the White House since Trump's re-election. The three-day state visit included meetings with top US officials such as Secretary of State Marco Rubio and Defense Secretary Pete Hegseth. Trump told reporters, 'We're very close to finishing a trade deal — big trade deal, actually,' signaling potential progress on a long-anticipated bilateral agreement. Marcos expressed strong support for the alliance, calling the US-Philippines relationship 'as important a relationship as is possible to have.' When asked about balancing ties between Washington and Beijing, Marcos emphasised Philippine sovereignty: 'There is no need to balance because our foreign policy is an independent one,' he said. 'Our strongest partner has always been the United States.' '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,' Marcos said prior to his departure from Manila. Philippine Finance Secretary Ralph Recto indicated the country is open to zero tariffs on certain US goods in exchange for an agreement. In remarks Monday, Defense Secretary Pete Hegseth reaffirmed US support for the Philippines under the Mutual Defense Treaty. 'Our storied alliance has never been stronger or more essential than it is today,' Hegseth said. 'This pact extends to armed attacks on our armed forces, aircraft or public vessels, including our Coast Guard anywhere in the Pacific, including the South China Sea.' Marcos responded by reaffirming Manila's commitment to the alliance: 'That assurance continues to be the cornerstone of that relationship, especially when it comes to defense and security cooperation.' Tensions in the South China Sea were a key backdrop to the visit. China's coast guard has repeatedly used water cannons on Filipino vessels in disputed waters, drawing international concern. The White House said the Trump-Marcos discussions emphasized a shared vision for a 'free, open, prosperous, and secure Indo-Pacific.' Hegseth, in a May speech, had warned that 'China poses a threat' and the US is 'reorienting toward deterring aggression by Communist China.' Despite growing friction, the US remains open to dialogue with China. Rubio met Chinese Foreign Minister Wang Yi earlier this month in Kuala Lumpur, where both sides agreed to manage tensions and seek areas for cooperation. Meanwhile, Marcos's meeting with Rubio in Washington reinforced both nations' commitment 'to maintain peace and stability' in the region, according to the State Department.
Filipino Times
2 days ago
- Business
- Filipino Times
Marcos, Rubio reaffirm PH-US ties amid South China Sea tensions
President Ferdinand Marcos Jr. and US Secretary of State Marco Rubio on Monday reaffirmed the commitment of the Philippines and the United States to strengthen defense and economic cooperation amid growing tensions in the South China Sea. The meeting took place ahead of Marcos' first summit with US President Donald Trump at the White House on Tuesday. Both sides emphasized the importance of deterrence and maintaining freedom of navigation and overflight in support of a free and open Indo-Pacific. Marcos and Rubio underscored the 'ironclad' US-Philippines alliance and its role in preserving peace and stability in the region. They also discussed increasing economic collaboration through the Luzon Economic Corridor, a US-backed initiative aimed at boosting infrastructure and supply chains. A statement from the US State Department said the two leaders committed to advancing shared prosperity and maintaining regular high-level engagements ahead of the 80th anniversary of US-Philippines diplomatic relations in 2026. The meeting comes as China continues to assert expansive claims over the South China Sea, deploying coast guard, navy, and maritime militia vessels in disputed areas. The United States has reiterated that it will defend the Philippines under the 1951 Mutual Defense Treaty if Filipino forces come under attack in the South China Sea. Washington has also expanded its security cooperation with the Philippines and Japan through a trilateral alliance aimed at strengthening defense, economic, and investment ties.
GMA Network
3 days ago
- Business
- GMA Network
PH-US reaffirm commitment to deterrence, free and open Indo-Pacific
President Ferdinand "Bongbong" Marcos Jr. shakes hands with US Secretary of State Marco Rubio in the Treaty Room at the US Department of State in Washington, D.C., July 21, 2025. REUTERS/ Umit Bektas Philippine President Ferdinand Marcos Jr. and US Secretary of State Marco Rubio have underscored their commitment to bolster Manila and Washington's economic and defense engagement in the face of China's aggressive posturing in the disputed South China Sea. Ahead of Marcos' first summit with US President Trump at the White House on Tuesday (Wednesday in Manila), the Philippine leader and America's top diplomat noted the importance of "deterrence" while "reinforcing freedoms of navigation and overflight in support of a free and open Indo-Pacific." They also said that the "ironclad" US-Philippines alliance is crucial in maintaining peace and stability in the Indo-Pacific region. Marcos and Rubio also highlighted the two allies' increasing economic cooperation through the US-envisioned growth region in Asia, called the Luzon economic corridor, for major infrastructure and other key projects. A readout on the meeting by the US State Department said Marcos and Rubio discussed efforts to advance their countries' shared prosperity, including through the Luzon Economic Corridor, by strengthening supply chains and delivering economic growth to the Philippines and the US. "The Secretary and President Marcos looked forward to maintaining regular high-level engagement between the United States and the Philippines as friends, partners, and allies, particularly ahead of the 80th anniversary of United States-Philippines diplomatic relations in 2026," the statement said. Both Manila and Washington share concerns on China's increasingly assertive behavior in the South China Sea, which Beijing claims nearly in its entirety. The US has repeatedly said it would come to the Philippines' aid if Filipino forces, ships or aircraft comes under attack anywhere in South China Sea under a 1951 Mutual Defense Treaty. China has deployed much larger fleets of coast guard, navy and suspected maritime militia ships in the past years to assert that extensive claim against smaller claimant states, which are the Philippines, Vietnam, Malaysia, Taiwan and Brunei. Confrontations have spiked between Chinese and Philippine coast guard and navy ships in the disputed waters in recent years. The US has been helping the Philippines in strengthening its territorial defense as the Marcos administration expands its security alliances with "like-minded" military powers. — RSJ, GMA Integrated News
