MAKATI CITY — Negotiations between the Philippines and the United States over the 19% tariff on Philippine goods remain “a work in progress,” according to Ambassador Jose Manuel Romualdez, the country’s top envoy to the US, on Monday. He said both sides are seeking ways to reduce the levy Washington plans to impose on Manila.
Romualdez said both sides aim to reach an “acceptable” agreement, while the Philippines, America’s longest-standing treaty ally in Asia, is negotiating for additional exemptions on products deemed taxable by the US.
“I think most of them have been granted,” Romualdez told reporters at the sidelines of the US-Philippines Society Forum in Makati City. “But we will continue to try to find ways and means to identify areas where the tariff will not be so steep because of our bilateral cooperation. It’s a continuing work in progress.”
Following his meeting with Philippine President Ferdinand Marcos Jr. in July last year, US President Donald Trump announced a new tariff rate of 19% for Manila — slightly below the 20% previously demanded, while US goods entering the country would be tax-free.
Romualdez clarified that zero tariffs on US goods will apply only to certain sectors, such as automobiles, and will exclude agricultural products “to protect local farmers.”
Key Philippine exports to the US include electronic products, including semiconductors, automobile parts, textiles and garments, wheat, animal feeds, and coconut oil.
Despite the US-imposed levy, Romualdez said trade relations between the two countries remain robust and active.
“While the 19% tariff is in place, we were able to negotiate a large number of exemptions for many of our exports, leading to the fact that our exports this year to the United States have been the highest in years,” he said during his keynote speech before diplomats, senior government officials, and business leaders.
He also highlighted Washington’s commitment to the Luzon Economic Corridor, a US-envisioned growth region in Asia aimed at boosting trade and establishing an economic hub in northern Philippines through major infrastructure and key projects, as evidence of the alliance’s focus on strengthening the country’s economic growth.
Romualdez added that the Philippines–US economic partnership has expanded to include semiconductor supply chain resilience, refining of critical minerals, and the development of civil nuclear power capabilities.
“Contrary to what some are saying, our trade relations with the United States are in good shape,” he concluded.
Edgardo Hernal started college at UP Diliman and received his BA in Economics from San Sebastian College, Manila, and Masters in Information Systems Management from Keller Graduate School of Management of DeVry University in Oak Brook, IL. He has 25 years of copy editing and management experience at Thomson West, a subsidiary of Thomson Reuters.
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