US gets no tariffs after Trump imposes 19% on Philippines, Indonesia
President Donald Trump placed a 19% tariff on the Philippines after meeting with Ferdinand Marcos Jr. at the White House. He reduced Indonesian tariffs from 32%.
The President of the United States, Donald Trump, announced on Tuesday the establishment of new trade agreements with the Philippines and Indonesia. These agreements entail a 19 percent tariff on exports from these nations, while permitting the entry of US goods without any duties. The progression is a result of a meeting held at the White House involving Trump and Philippine President Ferdinand Marcos Jr.
Trump made the announcement on his social media platform Truth Social. “President Ferdinand Marcos, of the Philippines, is just leaving the White House, with all of his many Representatives. It was a beautiful visit, and we concluded our Trade Deal, whereby The Philippines is going OPEN MARKET with the United States, and ZERO Tariffs. The Philippines will pay a 19% Tariff. In addition, we will work together Militarily,” he said. Marcos characterized the agreement as a “significant achievement” for Manila, additionally indicating that the Philippines will augment its imports of soy and wheat products, along with medicines, from the US, as reported by Bloomberg.
In 2024, data from the US government indicated that Washington experienced a trade deficit of $4.9 billion with Manila, while total trade reached $23.5 billion. Prior to the meeting with the Trump administration, the government of Marcos expressed a readiness to propose zero tariffs on certain US goods, as reported by the Associated Press. This represented a change in the position of the Marcos administration, which had earlier asserted that it could not provide a zero tariff to Washington, as Vietnam and Indonesia have done, arguing that such a move would negatively impact local enterprises.
In a distinct communication on Truth Social, Trump revealed an agreement with Indonesia, which effectively reduces their tariff rate from 32 percent to 19 percent. “It is my great honor to announce our trade agreement with the Republic of Indonesia, as represented by their highly respected President, Prabowo Subianto.” “It is agreed that Indonesia will be Open Market to American Industrial and Tech Products, and Agricultural Goods, by eliminating 99% of their Tariff Barriers,” he said.
He also announced that Washington will sell American-made goods to Indonesia at a zero tariff rate. “Furthermore, Indonesia is poised to provide the United States with essential Critical Minerals and is set to finalize substantial agreements, valued in the tens of billions of dollars, for the acquisition of Boeing Aircraft, American agricultural products, and American energy resources.” Trump remarked, “This Deal is a HUGE WIN for our Automakers, Tech Companies, Workers, Farmers, Ranchers, and Manufacturers.” The United States experienced a trade deficit of $17.9 billion with Indonesia.
As the 90-day deadline concluded on July 9, the Trump administration commenced the distribution of letters to trading partners, informing them of new tariff rates that would take effect on August 1. He previously dispatched correspondence to Japan and South Korea, imposing a 25 percent tariff on both allies. Soon after, he dispatched correspondence to 12 additional nations, including Indonesia, which faced a potential 32 percent tariff.
