Phl eyes lower US tariffs, stands firm on protecting farmers

Trade Secretary Cristina Roque remains hopeful that tariffs on Philippine exports to the United States could still be reduced, even as the rate has been officially set at 19 percent effective August 1, following an announcement by US President Donald Trump.

While the current rate is lower than the previously announced 20 percent, it is still higher than the 17 percent tariff revealed in April. Roque said Philippine and US trade officials are finalizing the implementation details and that discussions may eventually lead to a potential free trade agreement.

“Since it was already announced by President Trump, it’s final for now. But we’re still hoping we can bring it down,” Roque told reporters Friday.

She emphasized, however, that the Philippines is not offering market concessions on key sectors, especially agriculture, in exchange for tariff adjustments. Unlike Indonesia, which secured the same 19 percent rate by opening its entire market to the US, the Philippines opted to protect local producers of rice, sugar, and other sensitive goods.

“Even if the tariff goes down by just a little, it’s not worth what we’d lose in return. That’s why we held the line on agriculture,” Roque said.

The trade chief also clarified that the zero tariff on select US imports, such as medical equipment, automotive parts, and soya, only applies to products not manufactured locally. This move is designed to lower input costs for Philippine industries without threatening domestic producers.

Federation of Philippine Industries chair Elizabeth Lee lauded the government’s stance, calling it a responsible approach to balancing growth with local industry protection. She added that structured consultations with stakeholders and transparent disclosure of covered products can help mitigate risks and trigger timely safeguard mechanisms.

“At the end of the day, we all want growth, but it has to be balanced, fair, and locally anchored,” Roque said.