MANILA (Reuters) -The Philippines is concerned about the United States’ decision to impose 20% tariffs on Philippine exports but will continue to negotiate, its economic affairs minister said on Thursday.
Secretary Frederick Go told reporters that the Philippines remains committed to talking with the United States in pursuit of a bilateral deal, such as a free trade agreement.
“We remain committed to continuing negotiations with the U.S. in good faith to pursue a bilateral, comprehensive, economic agreement, or if possible an FTA,” Go told a media briefing.
Philippine officials are scheduled to travel next week for talks with their U.S. counterparts before the tariff rate takes effect on August 1.
Manila’s ambassador to the United States Jose Manuel Romualdez said on Thursday that the Philippines will seek to lower that tariff rate, which remains among the lowest reciprocal duties in Southeast Asia.
“We are still planning to negotiate that down,” Romualdez said in a phone message.
The United States remains a vital export destination, accounting for nearly 16% of the Philippines’ total exports in the first five months of the year.
Go said the Philippines will continue to pursue key economic reforms to ensure the country remains competitive, and seek more trade deals with other countries to diversify and expand markets for the country’s products.
U.S. goods trade with the Philippines reached an estimated value of $23.5 billion in 2024, according to data from the Office of the United States Trade Representative.
U.S. exports to the Philippines stood at $9.3 billion, a 0.4% increase from 2023, while imports from the Philippines totalled $14.2 billion, up 6.9% year-over-year.
The resulting U.S. goods trade deficit with the Philippines widened to $4.9 billion in 2024, a 21.8% increase from the previous year.
(Reporting by Karen Lema and Mikhail Flores; Editing by Kim Coghill, Stephen Coates and David Stanway)
