Trump says US, Philippines ‘very close’ to finalising trade deal

WASHINGTON: US President Donald Trump said on Tuesday (Jul 22) that Washington and Manila were nearing completion of a “big” trade agreement, as he welcomed Philippine President Ferdinand Marcos Jr. to the White House.

“We're going to talk about trade today and we are very close to finishing a trade deal, a big trade deal actually,” Trump told reporters at the start of the meeting.

Marcos is the first Southeast Asian leader to meet Trump during his second term. The visit comes as the US looks to strengthen regional ties amid its ongoing strategic competition with China.

TARIFF TALKS

Trump said the two countries “do a lot of business” together and expressed surprise at the “very big numbers” in bilateral trade, which he said would only grow under a trade pact.

The United States recorded a US$4.9 billion trade deficit with the Philippines last year on two-way goods trade totalling US$23.5 billion. Earlier this month, Trump increased proposed “reciprocal” tariffs on Philippine imports to 20 per cent, up from 17 per cent in April.

The US president has already concluded trade deals with Vietnam and Indonesia, Manila’s regional neighbours, but has taken a tough stance even with close allies. Vietnam agreed to a 20 per cent baseline tariff on its goods, while Indonesia settled at 19 per cent.

Gregory Poling, a Southeast Asia expert at the Center for Strategic and International Studies in Washington, said Marcos might be able to secure better terms than those reached by Vietnam and Indonesia.

MILITARY TIES, BUSINESS TALKS

Trump also highlighted the significance of the US-Philippine defence relationship, calling the Philippines “a very important nation militarily”.

“We've had some great drills lately,” he added.

Marcos arrived in Washington on Sunday and met with US Defence Secretary Pete Hegseth at the Pentagon on Monday. He also held talks with Secretary of State Marco Rubio.

During his visit, the Philippine leader is scheduled to meet with American business leaders investing in the Philippines.

Philippine officials say Marcos will emphasise that bolstering Manila’s economy is essential for it to serve as a strong US partner in the Indo-Pacific.

Assistant Foreign Secretary Raquel Solano said trade officials from both countries have been working on a “mutually acceptable and mutually beneficial” agreement.