Mandaluyong City on Friday (July 25, 2025). Roque expressed optimism that the 19 percent tariff imposed by the US on Philippine exports would be reduced as talks continue. (PNA photo by Joann S. Villanueva)
Trade Secretary Cristina Roque remains hopeful that tariffs on Philippine exports to the United States could still be reduced, even as the US government, under President Donald Trump, recently confirmed a 19 percent rate—slightly down from the previous 20 percent, but still higher than April’s 17 percent.
In a press interview on Friday, Roque shared that Philippine and US officials are in the final stages of ironing out the details of the new tariff policy, which takes effect on August 1.
“For now, the 19 percent rate is what we’ll work with since it was already announced by President Trump. But we’re still pushing hard behind the scenes to lower it further,” Roque said.
While the Philippines has expressed its desire for a more favorable rate, Roque emphasized that it cannot demand concessions outright. Instead, the country is carefully weighing its long-term interests—hinting that a free trade agreement with the US might be pursued in the future.
One of the government’s firm decisions: agricultural products are off the table.
“Even though we’re accepting a 19 percent tariff on our exports, we’re not giving in when it comes to opening up our agriculture sector. That’s non-negotiable,” Roque stressed, pointing out the importance of protecting local farmers and food producers.
Unlike Indonesia—which agreed to fully open its markets to secure a similar 19 percent tariff—Roque said the Philippines took a more cautious approach.
“If the tariff drop isn’t significant, why risk the livelihood of our farmers?” she explained in a mix of English and Filipino. “What we’re giving up has to match what we’re getting. Otherwise, it’s not worth it.”
The move to shield agriculture and key manufacturing industries has drawn praise from local industry leaders. Elizabeth Lee, chair of the Federation of Philippine Industries, lauded the government’s position as a bold stand for economic self-preservation.
“Zero tariffs on materials not produced locally could help lower costs for some sectors, as long as it’s implemented carefully,” Lee said. “The key is transparency, open dialogue with stakeholders, and making sure we’re ready to protect vulnerable industries when needed.”
Roque echoed this sentiment, saying that economic growth must not come at the expense of local livelihoods.
“At the end of the day, we all want to grow—but it has to be a kind of growth that’s fair, balanced, and rooted in local strength,” she said.