DESPITE US PRESIDENT Donald Trump hailing President Ferdinand Marcos Jr. as a “tough” negotiator, the reality is the Philippines failed to get a fair trade deal with the US, as products from the United States will enjoy zero tariffs while Filipino shipments to American markets will be slapped 19-percent in tariffs.
In a social media post, Trump detailed what was the outcome of the tariff talks between the US and the Philippines.
“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-percent Tariff,” Trump said.
“In addition, we will work together Militarily. It was a Great Honor to be with the President. He is Highly Respected in his Country, as he should be. He is also a very good, and tough, negotiator We extend our warmest regards to the wonderful people of The Philippines,” he added.
“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-percent Tariff,” US President Donald Trump said.
Prior to Marcos flying to the US to negotiate for lower tariffs, Trump wrote him informing that shipments to the United States would be slapped 20-percent tariff. This surprised the country’s economic managers who were expecting a 17-percent tariff on shipments to the US.
Filipino economist Michael Ricafort of Rizal Commercial Banking Corporation was among the first to raise the alarm, saying: “The biggest hit would still be on Philippine exporters.”
The economist said that the US is the country’s biggest export market, accounting for 17 percent of the total volume, and that the high 19-percent tariff on shipments to the United States will weigh on Philippine economic growth.
Nonetheless, Ricafort sees the high US tariffs not having much drag on Philippine economic growth compared to countries in Southeast Asia that are also more dependent on exports.
“However, slower world economic/GDP (gross domestic product) growth due to Trump’s higher US import tariffs and other protectionist measures could also indirectly weigh on the Philippine economy,” Ricafort told China Daily.
Among politicians, Senator Panfilo Lacson aired his grave concern, saying that the deal Trump concluded with Marcos is an insult to the Philippine head of state.
“Nineteen percent versus zero-percent tariffs is definitely not the most fair deal between decades-old friends of allies like the United States and the Philippines. If I may add, it is the worst insult that a host can throw at his guest. It is time for us to look for other trade partners,” Lacson said.
