The Department of Trade and Industry (DTI) said on Thursday it will dispatch a Philippine delegation to the United States next week for high-level trade talks, after Washington opted to raise the reciprocal tariff on Philippine exports to 20 percent starting August 1.
The move comes despite ongoing negotiations, with Manila expressing concern over the imposition, calling it “disheartening” given recent bilateral engagements.
The DTI said that while the 20 percent rate — higher than the 17 percent originally planned — is the second-lowest among tariffs levied by the US on the region, it still signals challenges for Philippine trade.
The DTI emphasized that the Philippines remains committed to advancing economic reforms and broadening market access through diversified partnerships. It also reaffirmed its role as a strategic and reliable Indo-Pacific economic partner.
“We respect the US’ concerns about trade imbalances and domestic manufacturing,” the DTI said, “but global supply chains are deeply interconnected, and unilateral measures could harm the global economy. Constructive engagement is key.”
Earlier today, Reuters quoted the Philippine ambassador to the US as saying that Manila is planning to negotiate with Washington to lower tariffs.
“We are still planning to negotiate that down,” Jose Manuel Romualdez said in a phone message.
The DTI said the upcoming discussions aim to seek a fairer and more comprehensive trade agreement that sustains mutual benefits amid shifting global economic dynamics.
US goods trade with the Philippines reached an estimated $23.5 billion in 2024, according to data from the Office of the United States Trade Representative.
US exports to the Philippines stood at $9.3 billion, a 0.4 percent increase from 2023, while imports from the Philippines totaled $14.2 billion, up 6.9 percent year-over-year.
The resulting US goods trade deficit with the Philippines widened to $4.9 billion in 2024, marking a 21.8 percent increase from the previous year.
