Description: US President Donald Trump and Philippine’s President Ferdinand Marcos Jr. met in the White House where they concluded a bilateral trade agreement between their countries. The Philippines agreed towards a symbolic decrease from 20% of levies on exports to the US to 19%, which was considered extremely favorable for the US, while putting the Philippines in an unfavorable position regarding bilateral trade with the US. The Philippines are considered one of the staunchest US allies in the Indo – Pacific as they share more than 70 years of strategic partnership with the US mostly concentrated on defense cooperation. Ferdinand downplayed his country’s unfavorable trade position in terms of the deal and stated that both countries would continue to pursue other venues of extending cooperation. Trump stated the Philippines managed to secure a crucial trade agreement on favorable conditions, as the bilateral trade deficit was much higher than the agreed 19% of tariffs on Philippine’s exports to the US. The Philippines are one of the smaller US trade partners with trade revenue of $14.2 billion recorded for 2024.
Impact: Trump’s trade – based and tariff foreign policy continues to develop largely favorable trade partnerships for the US with countries key to US interests in the Indo – Pacific. The symbolic reduction of 1% of levies on imports from the Philippines underscores the dependence of the small Asian country towards US support in its defense against constant maritime incursions by China. After securing a similar deal with Indonesia last week, Trump continues to pursue US – Asia partnerships most probably aiming at keeping China’s influence on the continent limited to its bilateral agreements with their Asian partners and potentially isolating its rival economically on a regional level. The Philippines remain subdued by US defense dependence, which impacts the country’s trade capacities and economic stability, while the US maintains a crucial ally in the Indo – Pacific closely within their orbit of influence.