Agriculture Secretary Francisco P. Tiu Laurel Jr. said Wednesday it was too early to assess how the recently concluded U.S.-Philippines trade deal would affect Philippine agricultural exports.
U.S. President Donald Trump earlier announced that the Philippines had agreed to allow American goods to enter the country tariff-free, while Philippine exports to the U.S. would face a 19 percent tariff—higher than the initially proposed 17 percent and just below the 20 percent rate the White House later floated.
“Whether the Philippine agriculture sector will gain or not from this trade deal with the U.S. remains to be seen, especially as many of our competitors are still negotiating for better terms,” Tiu Laurel said.
The U.S. has already slashed tariffs on Indonesian exports to 19 percent from 32 percent. Vietnam secured a 20 percent rate, down from a proposed 46 percent, while transshipped goods from Vietnam will be taxed at 40 percent.
Thailand and Cambodia have yet to finalize deals and face a proposed 36 percent tariff. While overall the Philippines enjoyed a USD3.98 billion trade surplus with the U.S. in 2024, it still suffered a USD1.95 billion agricultural trade deficit—albeit narrower than the USD2.36 billion shortfall in 2023. Coconut oil was the Philippines’ top agricultural export to the U.S. last year, generating USD558.7 million.
Meanwhile, the Philippines’ top farm imports from the U.S. included animal feeds (USD1.36 billion), cereals and cereal products (USD838.1 million), and other food and live animals (USD384.1 million).
Secretary Tiu Laurel said that, at first glance, the zero tariff on U.S. agricultural imports could support the goal of President Ferdinand Marcos Jr. of achieving a food-secure Philippines by lowering the cost of key inputs—especially for livestock production.
