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New U.S. Tariff Policy on Transshipped Goods Worries Southeast Asia

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08/07/2025
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New U.S. Tariff Policy on Transshipped Goods Worries Southeast Asia

by Daisy D.
08/07/2025
in Tariffs & Duties

Washington, D.C. — The United States plans to impose a 19% tariff on imports from the Philippines, U.S. President Donald Trump announced following a meeting with Philippine President Ferdinand Marcos Jr. at the White House.

The tariff proposal was shared by President Trump via social media on Tuesday, where he described the meeting as a “beautiful visit” and claimed the two countries had concluded a trade deal. According to his statement, the agreement would involve the Philippines lifting tariffs on U.S. goods and increasing military cooperation, although no official confirmation of the deal has been released by the Philippine government.

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If implemented, the 19% tariff would represent a significant increase from earlier proposed rates and would exceed the initial 17% tariff Trump floated in April. The U.S. administration says the policy is aimed at addressing trade practices it deems disadvantageous to American industries.

The proposal is part of a broader strategy involving tariff adjustments with multiple U.S. trading partners. While the U.S. has announced deals with countries including the UK, China, and Indonesia, several of these arrangements have yet to be fully confirmed or result in substantial changes to existing tariffs.

In response to the announcement, the Philippine Embassy in Washington issued a statement on Wednesday calling the reduced tariff rate—from the previously threatened 20%—“encouraging,” and emphasized the country’s interest in strengthening its economic relationship with the U.S.

The Philippines, though a smaller trading partner for the U.S., exported approximately $14.2 billion worth of goods to the U.S. in the past year. Major exports include electronic machinery, auto parts, textiles, and coconut oil.

Meanwhile, American businesses are reporting increased operational costs due to the broader tariff environment. On Tuesday, General Motors reported more than $1 billion in tariff-related costs over the last quarter. Automotive firm Stellantis, which produces the Jeep brand, reported a €300 million (approximately $349 million) impact in the same period.

With the U.S. administration setting an August 1 deadline for new tariffs to take effect, several global trade partners continue to navigate complex negotiations. Canadian Prime Minister Mark Carney noted ongoing discussions but expressed caution about committing to a deal within the timeframe.

As of now, details surrounding the announced U.S.-Philippines trade arrangement remain limited, and stakeholders await official documentation or clarification.

#TariffsAndDuties#TradePolicyUpdate#USPhilippinesTrade#SupplyChainNews#EconomicDiplomacy

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