The President of the United States Donald Trump will implement a 20% tariff on all products from the Philippines starting August 1, 2025. According to the letter he sent to President Ferdinand Marcos Jr., he said the trade relationship between the two countries is unfair.
Trump posted a copy of the letter on Truth Social with the warning: if the Philippines raises tariffs in response, this will be added to the 20% US tariff. For example, if the Philippines raises by 5%, the total US tariff on our products will be 25%.
Trump offered an exemption to companies willing to move operations to America, and said the approval of the paperwork would be quick. The Philippines' tariff is lower than other Southeast Asian countries such as Cambodia and Thailand with 36%.
Trump explained that the Philippines' tariffs and policies have long been unfair, causing a large trade deficit that he called a threat to the US economy and national security. Aside from the Philippines, the US has also imposed a 50% tariff on imports from Brazil and copper products.
In April, Trump first announced the 17% tariff but it was delayed due to the 90-day negotiation period. According to his new statement, there is no extension – it will continue in August. Meanwhile, Malacañang said that the impact of the 17% tariff was minimal and they accept it out of respect for the Philippines-US relationship.
