US and Philippine leaders Donald Trump and Ferdinand Marcos Jr. met at the White House to discuss a trade deal on Tuesday, July 22.
Following the two leaders’ meeting, the United States reduced tariffs imposed on the Philippines by 1 percent, after the Philippines agreed to open its market to the world’s largest economy without any trade tariffs.
In a social media post by Trump, he said that the Philippines has agreed to have an open market in the United States with zero tariffs.
Marcos also clarified that the zero tariff rate in the open market will only be applied to certain products, such as automobiles.
Marcos said that there are still some markets in the Philippines that have been requested to be opened as they are currently closed, such as automobiles, which are open markets and do not charge tariffs.
The US Office of the Trade Representative also noted that the Philippines continues to apply high tariffs on so-called “finished” automobiles and motorcycles.
“Philippines continues to apply high tariffs on finished automobiles and motorcycles.”
In particular, the Philippines imposed a 305 percent tariff on vehicles with a capacity of 10 seats, while those imposed on imported buses and trucks are at a 20 percent tariff.
It is worth noting that in 2023, Executive Order No. 12 was signed by President Ferdinand Marcos Jr. which aims to eliminate tariffs on electric vehicles, while imported hybrid EVs are subject to tariffs of between 1 and 5 percent.
