MANILA — The recent decision by U.S. President Donald Trump to reduce the proposed tariff on Philippine goods by one percentage point is seen as a positive development, according to Trade Secretary Cristina Roque.
Speaking during the Post-SONA discussions on Tuesday, Roque emphasized that the Philippines was able to maintain protections for its agricultural sector amid ongoing trade negotiations.
“We did not concede on agriculture. We protected the farmers,” Roque stated.
Earlier this month, President Trump announced that while the Philippines would allow broader market access for U.S. goods, a 19 percent tariff would still apply to Philippine exports entering the United States. This follows earlier announcements of potential 20 percent tariffs affecting over two dozen global economies.
Roque noted that while the rate remains higher than the 17 percent figure mentioned in April, maintaining tariff protections for sensitive sectors such as agriculture was a key priority for the Philippine side.
“They could have lowered the tariff further, but that would have come at the expense of local agriculture, which we believe would not have been a balanced exchange,” she explained. “For us, that is already a win.”
Further details of the negotiation remain confidential due to a non-disclosure agreement.
Roque also shared that the most recent sector granted zero reciprocal tariffs for U.S. goods is the pharmaceutical industry. This agreement enables the Philippines to import medicines and medical equipment at reduced costs.
Palace Press Officer Claire Castro downplayed the broader economic impact of the revised tariffs, highlighting that only 16 percent of Philippine exports are currently directed to the U.S., with a majority consisting of electronic components that are exempt from the imposed tariffs.
“To put it plainly, it has an impact on the country, but not that much,” Castro said.
President Ferdinand Marcos Jr., addressing the media after his meeting in Washington, described the evolving tariff policies as a “living thing” that may continue to change in response to global market dynamics.
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