Starting August 1, 2025, the United States of America (USA) will impose a 20% tariff on all and any Philippine-made products coming into their shores as stated in US President Donald Trump’s official letter to President Ferdinand “Bongbong” Marcos, Jr., according to a Philippine News Agency (PNA) news article. In response, the Philippines wants to renegotiate with America while there is still time.
For the newcomers reading this, America previously set a 17% tariff on the Philippines when Trump unveiled last April the many tariff rates on many nations. The Philippines was confident about the negotiations they had with their American counterparts.
To put things in perspective, posted below is an excerpt from the PNA news article. Some parts in boldface…
The Philippine government is looking to renegotiate the 20 percent tariff imposed by the Trump administration on Philippine goods, according to Philippine Ambassador to the US Jose Manuel Romualdez.
In a letter dated July 9 addressed to President Ferdinand R. Marcos Jr., US President Donald Trump announced that beginning Aug. 1, 2025, the US will raise tariffs on Philippine goods to 20 percent—up from the previously announced 17 percent rate.
In a text message to the Philippine News Agency on Thursday morning, Romualdez said Manila would formally request a review of the tariff hike from Washington D.C.
Trump, in his letter, recognized the Philippine-US trade relations and said the latter has “agreed to continue working with the Philippines, despite having a significant trade deficit.”
“Starting on August 1, 2025, we will charge the Philippines a Tariff of only 20 percent on any and all Philippine products sent into the United States, separate from all Sectoral Tariffs,” it read.
Trump said there would be “no tariff if the Philippines, or companies within” the country decide to build or manufacture products within the US.
The US, he added, is also open to “reconsider an adjustment” if the country opens its “closed trading markets to the United States,” and eliminates its “tariff, and non-tariff policies and trade barriers.”
“These tariffs may be modified, upward or downward, depending on our relationship with your country,” he said.
Trump, meanwhile, warned Manila against reciprocating the move with a tariff increase.
“If for any reason you decide to raise your Tariffs, then, whatever the number you choose to raise them by, will be added onto the 20 percent that we charge,” he said.
For transparency, posted below is the 2-page letter of Trump to Marcos regarding tariffs.
Let me end this post by asking you readers: What is your reaction to this recent development? Do you think the Philippines fell short in its recent negotiations with the United States which resulted in a higher tariff at 20%? Do you think the economic managers of the Philippines can convince America to delay, if not lower, the declared tariff? Do you think a 20% tariff rate by America will hurt the economy of the Philippines this year?
You may answer in the comments below. If you prefer to answer privately, you may do so by sending me a direct message online.
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