On July 22, President Donald Trump announced that a trade pact had been reached with the Philippines.
Philippine imports will be tariffed at 19%. In contrast, US exports to the Philippines will have zero tariffs, and the nations will cooperate militarily, according to a report by the Wall Street Journal (WSJ).
“President Ferdinand Marcos, of the Philippines, is just leaving the White House, with all of his many Representatives,” said Trump in a Truth Social post. “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. 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!”
The post is time-stamped 1:30 pm on July 22.
Trump had threatened 20% tariffs before the deal in a recent letter to President Ferdinand Marcos Jr, according to news reports. He also proposed 17% tariffs during his “Liberation Day” announcement.
In 2024, according to a WSJ report, the United States recorded a $4.9 billion trade goods deficit with the Philippines, which ranked as its 33rd largest trading partner in total goods trade.
Earnings reports from blue-chip companies continue to come in, with Coca-Cola, General Motors, and Lockheed Martin among the latest to release results, reported WSJ. Despite increased sales, General Motors saw its profits decline as automotive tariffs took a toll on its earnings. GM’s stock dropped more than 7% in response.
According to data from the Economic Development Partnership of North Carolina, year-to-date, through May, imports from the Philippines to North Carolina have increased by 34%, from $72 million to $96.6 million. Exports from North Carolina to the Philippines year-to-date through May have decreased slightly by 0.6%, from $46.4 million to $46.1 million.
“In 2024, the United States accounted for approximately 17% of all Philippine exports, making it the top destination for its goods, surpassing Japan (14%) and China (13%),” Joseph Harris, fiscal policy analyst for the John Locke Foundation, told the Carolina Journal. “Given that more than half of all Philippine exports consist of electrical machinery and equipment, it is highly likely that the Philippines accepted the deal in exchange for guaranteed or enhanced access to the US market for its most valuable export category.”
US Treasury Secretary Scott Bessent said he would soon meet with Chinese officials.
“I think trade’s in a very good place with China,” said Bessent. “We’re going to be talking about a lot of other things that our countries can do together.”
He expects the meeting on July 28 in Stockholm with Chinese officials to lead to extending a trade deal that expires on Aug. 12.
Following an extension earlier this month to Aug. 1 for imposing looming tariffs, the administration indicated that there would not be another delay in the tariff deadline.