Philippines Eyes Tariff Cuts for US Trade Deal

Manila willing to reduce duties on select American goods to secure lower tariffs on its exports.

The Philippines is prepared to lower tariffs on certain products from the United States as a strategic move to negotiate reciprocal tariff reductions. This initiative aims to mitigate the potential impact of a proposed 20% U.S. tariff on Philippine exports.

Strategic Tariff Negotiation

Finance Secretary **Ralph Recto** revealed that a specific list of products has been identified for potential tariff reduction. He indicated that this measure would not significantly harm the Philippine economy, as the potential losses have been calculated and deemed manageable.

“I think we already have a great plan for the negotiation. We want to reduce whatever duties they impose on our products.”

—Ralph Recto, Finance Secretary

According to the Philippine Statistics Authority, the United States was the largest export market in May, accounting for USD 1.115 billion, or 15.3% of the nation’s total exports. This underscores the importance of securing favorable trade terms.

Push for Free Trade

**Recto** also expressed the Philippines’ aspiration to establish free trade agreements (FTAs) with the U.S. and other global partners. The ultimate goal is to broaden market access and stimulate investment in manufacturing to boost export capacity.

This strategy aligns with broader economic goals of fostering increased international trade. For instance, the U.S. Trade Representative’s office noted that in 2022, U.S. goods and services trade with the Philippines totaled $24.6 billion, highlighting significant economic ties. (USTR)