On July 22, 2025, President Trump announced the completion of a new bilateral trade and investment agreement with the Philippines. He made the announcement at a joint press conference with Philippine President Ferdinand Marcos Jr. in the Oval Office. The agreement supposedly includes a 19% tariff on goods brought into Japan from the Philippines. In return, Manila will eliminate all tariffs on U.S. exports. Philippine officials have not confirmed the agreement—nationally or locally.
Trump and Marcos Jr. seated side by side — photographers were allowed in for this shot — at the White House, Washington, D.C. They had a groundbreaking exchange on economic collaboration and military foreign relations modernization, cooperation, among other issues. During his speech, Trump lauded the Philippines for taking an “open market” approach to trade with the US.
In his remarks, President Trump touched on the positives in the trade relationship between the two countries.
“We’re very close to finishing a trade deal. A big trade deal, actually.” – Donald Trump
The announcement comes at a time of heightened tensions in the South China Sea. The President underscored that the Philippines is acutely aware of the need to modernize the military apparatus today as China is viewed as a major aggressor. Given this context, the need to build deeper connections with the U.S.
During that now infamous meeting, Trump focused on the partnership’s short-term economic value. He claimed that it would strengthen Manila’s defense and self-reliance initiatives.
“going OPEN MARKET with the United States” – Donald Trump
The Obama administration has now publicly acknowledged key elements of the trade deal. Yet Manila has released no official word on its terms, or even confirmed the deployment. Lack of confirmation leaves very troubling questions hanging over future course of U.S.-Philippines relations. This uncertainty is troubling, as it could have deep and lasting ramifications for both countries.
Analysts say bolstering trade relations with the Philippines would be just the opportune game changer that the U.S. needs. This move is more important than ever, considering the ongoing geopolitical turmoil in the Asia-Pacific. The result of this trade agreement could very well set the tone for other diplomatic talks between Washington and its Southeast Asian partners.