U.S. President Donald Trump just announced a sharp increase in these tariffs on imports from the Philippines. Beginning in the middle of summer, starting August 1, a 19% tax will be applied. This decision is more than a smart move. Its purpose is to motivate countries to play nice and stop doing what Mr.
For instance, back in April when Trump first announced his plans for tariffs. These tariffs would be the highest duties imposed on the US since the early 1900s. Since that announcement, he has negotiated concrete trade agreements with countries including the UK, China and Indonesia. His recent laser-like focus again turned to increasing duties, this time specifically aiming at the Philippines with this most recent tariff.
In his early negotiations with Philippine leaders, Trump suggested a punitive 20% tariff. After much delay, he signed off on a 19% duty. The Philippine government has yet to formalize these plans. If they go ahead, the tax could be even bigger than the one first feared in April, when Trump’s tariff plans sparked enormous financial panic.
On social media, Trump claimed that the new tariff is “THE” agreement. The agreement would have obligated the Philippines to remove tariffs on US products in exchange for military partnership. This two-fold strategy reinforces his administration’s goal to use personal and economic connections to strengthen geopolitical alliances.
For one, the Americans do many things, and their aims change depending on the stage of the process. It’s equally plain that the Canadian government will walk away from a bad deal. The objective is not to have an agreement at any cost,” remarked Canadian Prime Minister Mark Carney amidst ongoing trade negotiations with the US.
The Philippines is a smaller trade partner, but it sure filled up the score sheet last year. In 2021, it exported an estimated $14.2 billion of goods to the United States. Such an increase in tariffs, ostensibly a punishment, may have severe repercussions for both the bilateral relationship and the Philippine economy.
After meeting with provincial government heads in Ontario, Trump said, “We’ll see,” raising the prospect of a bad negotiation with our most important trading partners. His continuing tariff policies have put deals with Canada and the European Union on ice.
As these recent developments evolve, so too do the political implications for bilateral trade dynamics between the US and its trade partners.