Talks on finalization of US tariffs on PH “a work in progress,” says envoy

Talks on the 19% tariff on Philippine goods earlier announced by United States President Donald Trump is “still a work in progress” as the two allies are finding ways to bring down the levy Washington planned to impose on Manila, the country’s top envoy to the US said Monday.

Ambassador Jose Manuel Romualdez said both sides are seeking an "acceptable" deal, while the Philippines, America's longest treaty ally in Asia, is negotiating for more exemptions on products deemed taxable by the US.

“I think most of them have been granted,” Romualdez told reporters at the sidelines of the US-Philippines Society Forum in Makati City. “But we will continue to try to find ways and means to be able to find again areas where the tariff will not be so steep because of (our bilateral) cooperation.”

“It’s a continuing work in progress,” he said.  Right after his meeting with Philippine President Ferdinand Marcos Jr. in July last year, Trump announced that the new tariff rate for Manila was at 19% - just below the 20% he previously demanded, while US goods entering the country would be tax-free.

Romualdez earlier explained that the zero tariffs on US goods will apply only to some sectors, such as automobiles, and would exclude agricultural products “to protect local farmers.”

Key Philippine exports to the US include electronic products, including semiconductors, automobile parts, textiles and garments, wheat, animal feeds, and coconut oil.

Despite the US-imposed levy on the Philippines, Romualdez said the two countries continue to enjoy robust and active trade relations.

“While the 19% tariff is there, we were able to negotiate a large number of exemptions for many of our exports, leading to the fact that I’m told our exports this year to the United States have been the highest in years,” he told diplomats, senior government officials and business leaders in his keynote speech.

Washington’s commitment to the Luzon Economic Corridor - a US-envisioned growth region in Asia, that intends to increase trade and establish an economic hub in the northern Philippines through major infrastructure and other key projects- likewise highlights its ally’s commitment to bolster the country’s economic growth.

Manila and Washington’s economic partnership has also expanded to include semiconductor supply chain resilience, refining critical minerals, and developing civil nuclear power capabilities, Romualdez added.

“Contrary to what some people are saying, our trade relations with the United States is in good shape,” he said. —LDF, GMA Integrated News