US Tariff Delay Spurs Philippine Negotiation Hopes
Trade Secretary optimistic for “mutually beneficial deal” as US extends rate implementation
Philippine trade officials are leveraging a one-week delay in new US tariff rates to intensify negotiations, aiming for an agreement favorable to both nations. The US pushed back the implementation of increased tariffs from August 1 to August 7.
Push for Favorable Terms
Department of Trade and Industry Secretary **Cristina Roque** expressed hope for a positive outcome. “On the part of the Philippine government, we will continue with our talks with the US, and hopefully we can come up with a mutually beneficial deal the soonest possible time,” she stated on Friday.
The Philippine government is also focusing on diversifying its trade partners to mitigate the impact of potential tariff hikes. This strategy aims to create new market access opportunities for Filipino exporters, exploring alternative markets beyond the US.
Economic Ripples
The looming threat of a 19 percent reciprocal tariff on Philippine exports to the US, a consequence of stated US protectionist policies, has reportedly contributed to market anxieties. Analysts pointed to this uncertainty as a factor in the recent performance of the Philippine Stock Exchange index and the peso’s weakness.
Economist **Michael Ricafort** of Rizal Commercial Banking Corporation noted the market’s cautious stance. Investors are observing whether President **Donald Trump** will be amenable to compromises on tariff rates during ongoing trade discussions.
Negotiation History
The US initially proposed a 17 percent tariff on Philippine products in April, later increasing it to 20 percent. This rate was subsequently adjusted to 19 percent following the July 20-22 visit to the US by President **Ferdinand R. Marcos Jr.** and his delegation.
As of July 2025, the Philippines’ exports to the US faced potential tariffs, with the Philippines’ proposed rate being among the lowest for Asian countries. This situation was achieved without negatively impacting the nation’s agriculture sector or requiring the offering of concessions to reduce tariffs.
According to the World Bank, global trade has experienced significant volatility, with trade tensions impacting emerging economies significantly. In 2023, the share of global trade in services for developing economies saw a modest increase, highlighting the ongoing shift in international commerce dynamics (World Bank, 2024).
US delays new tariff rates on trading partners by one week. This gives us more time to negotiate a better deal for the Philippines. We are working hard to protect our exporters. #TradeDeal #Philippines @DTIPhilippines
— DTI Secretary (@DTI_Sec) August 1, 2025
The Philippine government’s proactive engagement and focus on diversification underscore its commitment to navigating the complexities of international trade and securing beneficial agreements for its national economy.
