US President Donald Trump on Tuesday (July 22) announced a new trade agreement with the Philippines following a high-level meeting at the White House with President Ferdinand Marcos Jr. Trump made the announcement via a post on Truth Social, describing the deal as a significant step toward economic cooperation.
“President Ferdinand Marcos, of the Philippines, is just leaving the White House… We concluded our Trade Deal, whereby The Philippines is going OPEN MARKET with the United States, and ZERO Tariffs,” Trump wrote.
He added that the Philippines would pay a 19% tariff. Trump emphasised the bilateral military component as well: “In addition, we will work together Militarily… He [Marcos Jr.] is also a very good, and tough, negotiator.”
Balancing US-China relations
During their Oval Office interaction, both leaders addressed concerns over how the Philippines would manage its diplomatic relationship with both Washington and Beijing.
Trump downplayed potential tensions, referencing a personal invitation from Chinese President Xi Jinping:
“I don’t mind if he gets along with China because we’re getting along with China very well.”
Marcos Jr. reaffirmed the Philippines’ commitment to its longstanding alliance with the United States while seeking broader regional partnerships: “Our strongest partner has always been the United States… But we are trying to form coalitions and multilateral relations.”
US missile presence raises questions
The two leaders were also asked whether the presence of US missiles in the Philippines would be perceived as provocative by China. Trump suggested that previous tensions were due to a shift under a former Philippine president, hinting at Rodrigo Duterte’s China-friendly policies: “You had a country that was tilting toward China for a period of time… When I got elected, everything changed and they came right back to us.”
Marcos Jr. framed the missile deployments as part of a broader military modernization plan and reaffirmed the importance of national defense:
“Any kind of military spending, we would wish that it wasn’t necessary, but it is… The United States is assisting the Philippines in what we call our self-reliance defense program.”
Military and economic alignment
Both leaders highlighted their shared interest in bolstering economic ties and defense cooperation amid growing geopolitical tensions in the Asia-Pacific region. The White House meeting comes at a time of increased Chinese assertiveness in the South China Sea, where both the US and the Philippines have called for maintaining open sea lanes and a rules-based order.