Efforts by the Department of Trade and Industry (DTI) to negotiate for lower tariffs with the Trump administration fell on deaf ears with the imposition of an even higher 20 percent tariff, higher than the 17 percent reciprocal tariff announced earlier, on all Philippine exports to the U.S. starting Aug. 1, 2025.
If it’s a consolation though, the Philippines got the softest rate among the latest group of countries that President Trump has sent similar letters to inform them of the new tariff rates.
Based on the screenshot of letter posted on Truth Social dated July 9, 2025 and signed by Trump, the 20 percent tariff will be imposed on all Philippine exports to the U.S. separate from the sectoral tariffs starting August 1, 2025.
Trump also warned that transshipment of exports to avoid the tariffs would be slapped with much even higher tariff. The letter further noted that the 20 percent tariff, which is higher than the 17 percent reciprocal tariff announced earlier, is far from balancing the trade deficit but could ensure a “more balanced and fair trade.”
Trump stated the U.S. government’s commitment to both countries’ trading relationship but also emphasized that the relationship, unfortunately, is far from reciprocal because of the trade imbalance against the U.S.
To continue such a relationship, Trump said, “We have concluded that we must move away from these long-term and very persistent trade defi cits engendered by the Philippines’ tariff and non-tariff policies and trade barriers.”
Trump further blamed Philippine companies for causing the trade imbalance because they do not invest in manufacturing their products in the U.S. Trump may consider tariff adjustment should the Philippines decide to remove its trade policies and other tariff and non-tariff barriers.
“Tariffs may be modified upward or downward, depending on our relationship with your country,” the letter stated.
It could recalled that DTI officials led by Secretary Cristina Roque and Special Assistant to the President for Investment and Economic Affairs of the Philippines Secretary Frederick Go went to the U.S. to negotiate for lower rate.
Palace Press Officer Claire Castro said in a Malacañang briefing quoted Go as saying, “There’s no final decision or announcement yet from the US, but based on the update from Special Assistant to the President for Investment and Economic Affairs Frederic Go, the negotiations are still ongoing.”
The latest tariff rates on the rest of the countries are: Cambodia — 36 percent; Thailand – 36; Indonesia – 32; Malaysia – 25; Myanmar – 40; Laos – 40; Bangladesh – 35; Japan – 25; S. Korea – 25; S. Africa – 30; Kazakhstan – 25; Bosnia and Herzegovina – 30; Tunisia – 25; Serbia – 35; Brunei – 25; Moldova – 25; Algeria – 30; Iraq – 30; and Libya – 30.
