Trump slaps 19% tariffs on Philippines, Indonesia; US to face zero duties

US President Donald Trump imposed a 19 per cent tariff on the Philippines after meeting with President Ferdinand Marcos Jr at the White House. He also lowered the tariffs on Indonesia from 32 per cent

US President Donald Trump on Tuesday (local time) announced new trade agreements with the Philippines and Indonesia, imposing a 19 per cent tariff on their exports while allowing US goods to enter duty-free. The development follows a White House meeting between 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 [sic]," he said.

 

 

Marcos termed the deal a "significant achievement” for Manila and also said the Philippines will increase imports of soy and wheat products as well as medicines from the US, Bloomberg reported.

 

US-Philippines deficit

 

According to the US government data, in 2024, Washington had a trade deficit of $4.9 billion with Manila, with total trade at $23.5 billion.

 

Ahead of the meeting with the Trump administration, Marcos' government indicated that they were willing to offer zero tariffs on some US goods, reported the Associated Press. This marked a shift in the stance of the Marcos government, which previously said it could not offer a zero tariff to Washington, like Vietnam and Indonesia, claiming that it would hurt domestic businesses.

 

Trump signs deal with Indonesia

 

In a separate post on Truth Social, Trump announced a deal with Indonesia, bringing down their tariff rate from 32 per cent to 19 per cent. "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 [sic]," he said. 

 

He also announced that  Washington will sell American-made goods to Indonesia at zero tariff rate. "In addition, Indonesia will supply the United States with their precious Critical Minerals, as well as sign BIG Deals, worth Tens of Billions of Dollars, to purchase Boeing Aircraft, American Farm products, and American Energy. This Deal is a HUGE WIN for our Automakers, Tech Companies, Workers, Farmers, Ranchers, and Manufacturers", Trump noted.

 

The US had a trade imbalance of $17.9 billion with Indonesia, reported the Associated Press.

 

Trump sends out tariff letters

 

As the 90-day deadline ended on July 9, the Trump administration started sending out letters to trading partners, announcing to them new tariff rates, which would come into effect on August 1. He previously sent out letters to Japan and South Korea, charging both allies with 25 per cent tariffs. Soon after, he sent out letters to 12 other countries, including Indonesia, which was threatened with a 32 per cent tariff.