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In a new development on the international stage, the United States and the Philippines have agreed to a fresh trade deal that gives American exporters a big break, with zero tariffs on goods sent to the Philippines.
U.S. President Donald Trump announced the agreement on Tuesday through a post on Truth Social, following a meeting at the White House with Philippine President Ferdinand Marcos Jr. The new pact is set to open the door to freer trade for U.S. products, while the Philippines will continue to pay a 19% tariff on goods it exports to the U.S.
While that tariff gap might raise eyebrows, Trump framed the deal as a major win for American businesses. He praised his meeting with President Marcos as “a beautiful visit” and said it was “a Great Honor” to host him. Trump also called Marcos a “very good, and tough, negotiator,” and noted that he’s “Highly Respected in his Country.”
Beyond trade, the deal reportedly includes a military cooperation element between the two countries, though no specific details have been released yet about what that might involve, whether it’s joint exercises, defence aid, or shared security plans in the region.
This agreement signals an effort to deepen U.S.-Philippine relations on both economic and defence fronts. With growing regional tensions in Southeast Asia, particularly involving China, this partnership could have wider implications for geopolitical balance.
For now, U.S. exporters can celebrate the tariff-free opportunity, while Filipino officials may face questions at home about the 19% export tariff they’re agreeing to pay.