The Philippines supposedly got a 1% tariff discount, is that really a victory?

[Japinat]

This has been circulating online, and many Filipinos don’t seem impressed with the news. Before the president's visit, the tariff was 20%, and now it's 19%. They're calling it a “significant win,” but for real - is it?

we impose lower tariffs (or even none at all) on U.S. products entering the country. so what exactly are we celebrating here?

Feels like we’re being taken for a ride, hyping up something that barely scratches the surface.
Almost like clapping for a clown just because he managed to entertain us so well.


https://www.philstar.com/business/2025/07/23/2460120/marcos-1-reduction-us-tariff-still-significant-achievement

MANILA, Philippines — After a historic visit to the White House yielded just a 1% reduction in US tariffs on Philippine goods, President Ferdinand Marcos Jr. still called it a win.

The tariff rate, previously at 17%, was raised by US President Donald Trump to 20% before Marcos’ visit.

Marcos met with Trump and other US officials to discuss defense and trade matters, with the Philippine side hoping to secure lower tariff rates.

“I can already tell everyone, as it’s come out already, that we managed to bring down the 20% tariff rate for the Philippines to 19. Now, 1% might seem like a very small concession. However, when you put it into – in real terms, it is a significant achievement,” Marcos said in a media interview released on Wednesday, July 23.

Marcos attributed the “special relationship” between the US and the Philippines.

[franky1]

it all depends on the details
firstly, forget the % number as just a number or $ amount

instead imagine it as this:
a base unmovable tariff of 10%
and along with that a 1% penalty for trades/tasks/policies the US dont want
[insert 8 random panalties not important to this demo]
EG 1%+ penalty for allowing shipments uninspected for drugs
EG 1%+ penalty for allowing shipments uninspected for weapons
EG 1%+ penalty for shipping alcohol of 80-90proof(lambanóg)
which could add upto 21% tariff

now imagine(for demo, not real world) the philippines never before did export strong alcohol but it would get to 21% tariff if they started. so was offered 20% without the alcohol deal
and so, later negotiations changed things:
by inspecting shipments for drugs/weapons (something morally should be done anyway) they get it down to 18% and that allows them to then take the 1% hit to be allowed to ship strong alcohol to get to 19%.. thus a win because now Philippines alcohol industry can now export to the US and they are at 19% not 21%

this posts demo is not detail correct of what the negotiations actually allowed/penalised. but its just to demonstrate how a 1% difference actually has big wider implications on many things such as a huge boost to one industry and also a safety precaution of 2 risks to america being less risky

... they are not just bartering a number for random number sake.. they are bartering policies/penalties/sanction details and trade industries allowed/blocked. which have tariff% attributed to each policy

that 1% difference actually has real world policy changes behind them. its not just a 1% tariff

that 1% does not even need to represent one policy negotiation. it could be a +5% penalty in exchange for a -6 discount based on negotiating 11 policy agreements, which helps 5 industries/policies on Philippines part and also get a 1% discount for all industries

[tsaroz]

Trade tariffs have always existed. Many countries have always favored their domestic production by putting a tax on imports. WTO tried to limit it to some extent but that was never the case. 20% or 1% is not a very big difference when it comes to goods where you have significant advantage but for competitive goods, 1% could make or break economies.

Philippines developed itself as an export focused economy and US is its largest importer with 16% of all Philippines export going to US. If US levies a 20% tax on Philippines goods, it becomes more mostly than local goods or the ones coming from less taxed nation. A 1% drop on it could potentially save a large number of industries. If Philippines or any other countries are not happy with the tariff US is imposing, they should find a new market for their products.

[btc78]

This has been circulating online, and many Filipinos don’t seem impressed with the news. Before the president's visit, the tariff was 20%, and now it's 19%. They're calling it a “significant win,” but for real - is it?

we impose lower tariffs (or even none at all) on U.S. products entering the country. so what exactly are we celebrating here?

Feels like we’re being taken for a ride, hyping up something that barely scratches the surface.
Almost like clapping for a clown just because he managed to entertain us so well.

this is almost a laughing matter

people are really celebrating the bare minimum do they? i think that this is just a way to save the president's image he doesn't seem to be doing well in his term and he has not made any of his promises true there has not been significant improvements in the country so i do not think that this is something worth celebrating over for

[Fortify]

This has been circulating online, and many Filipinos don’t seem impressed with the news. Before the president's visit, the tariff was 20%, and now it's 19%. They're calling it a “significant win,” but for real - is it?

we impose lower tariffs (or even none at all) on U.S. products entering the country. so what exactly are we celebrating here?

Feels like we’re being taken for a ride, hyping up something that barely scratches the surface.
Almost like clapping for a clown just because he managed to entertain us so well.

This whole tariffs things is an absolute farce and it's ultimately Americans who pay this additional tax. Are you saying that before this whole charade started with Trump that your goods were tariffed at 17% already? In which case there never was much wiggle room and 19% is probably the only concession you could have gotten - there's no way Trump will want to look weak by dropping it below where it started. I've never seen a president work so hard to bring down the American economy from within - he has sown so much bitterness by allies and enemies alike while only serving his elite friends. Then again, he is the golfing president who never gave up his business interests, which are in direct conflict with a supposedly unbiased politician.

[Zlantann]

Marcos attributed the “special relationship” between the US and the Philippines.

One per cent deduction is worth celebrating. If you calculate how much has been saved, it might be enough to carry out a meaningful project in the country. I would have to say that the Philippines obtained grace in the sight of Trump because he just added two per cent to the tariff. I don't think the visit was in vain because other countries have received higher tariffs.  However, opening up the Philippines market to the US might affect the local industries since the US goods will be cheaper. Local industries might go bankrupt because they cannot compete with the US.

[asriloni]

Hahaha yeah it sounds weird with all of efforts made by PH's president came to US, then he comeback with only 1% tariff reduction. However, i won't focus on that. Let's say PH's tariff with US is already finalized, so they will not get another tariff increase that may happen in the first day of august.

However, i believe not all of agreements between US and PH being disclosed. You can't really sure 1% tariff reduction is bad for PH while 19% tariff is good for US.

[justinlamode]

From the records, Donald Trump has only raised the tariffs by 2% for the Philippines and this is something to celebrate compared to what he has done for other countries. I may not know the value of these percentages in dollar terms but seeing that Philipines enjoy such level of love from Donald Trump is something to celebrate. There are countries facing as high is 20% raise on tariffs, not that I'm saying this is right but based on the realities on ground,  Philippines have every reason to celebrate. 

[bhadz]

Products from the US will have no longer tax. But products that are from here imported to the US will have addition 19% tariff. While it's only 1% discount and we want more. The delegation together with our president shouldn't went there and just had a phone call just like the leader of Indonesia that he has called Trump and able to lessen the tariffs imposed to their country and I think from 32% it became 19% as well.

[Botnake]

Marcos attributed the “special relationship” between the US and the Philippines.

One per cent deduction is worth celebrating. If you calculate how much has been saved, it might be enough to carry out a meaningful project in the country. I would have to say that the Philippines obtained grace in the sight of Trump because he just added two per cent to the tariff. I don't think the visit was in vain because other countries have received higher tariffs.  However, opening up the Philippines market to the US might affect the local industries since the US goods will be cheaper. Local industries might go bankrupt because they cannot compete with the US.

I have to admit it’s essential for Philippines to establish a smooth relationship with US, but come to think of it? Are we given the real advantage here, or Trump is only using Marcos to get rid of our local products and patronize those foreign products instead which eventually lose our loyalty to our own locals and that having national pride is no longer observed from us real Filipinos.

If this is a victory for Marcos, I don’t think this is a victory for the whole Philippines.

[r_victory]

It's certainly a victory; we Brazilians will pay 50%...

Unfortunately, our country's president and his economic team lack the technical expertise necessary for negotiations. In addition to lacking diplomatic competence, they're taking sides where they shouldn't. Brazil has always been neutral on certain issues.

Trump caught many countries by surprise when he announced his tariffs. In this scenario, any reduction is valid, even if it seems insignificant. In the end, the sum total will be beneficial.

[bullbandit9]

I asked ChatGPT to give me a quick estimate based on data that it has.

In 2024, the U.S. imported approximately US $14.16 billion worth of goods from the Philippines. Assuming all of those goods face the general tariff rate: At 20% tariff, total duties = 14.16 B × 20% ≈ US $2.832 billion. At 19% tariff, total duties = 14.16 B × 19% ≈ US $2.691 billion. U.S. importers of Philippine goods collectively save roughly US $141 million annually.

Now people must remember several things about these things, it is hard to make a good quick estimate. Many goods are under different tariff exemptions, and other goods have extra tariffs on it. People are looking at this situation all wrong. It is not that a 1% reduction is significant, but rather what would have happened if they had not made a deal? Trump would have imposed a high tariff something like 50% which would have hurt Philippines a lot, so the delegation prevented all of this damage which is pretty successful.

Products from the US will have no longer tax. But products that are from here imported to the US will have addition 19% tariff. While it's only 1% discount and we want more. The delegation together with our president shouldn't went there and just had a phone call just like the leader of Indonesia that he has called Trump and able to lessen the tariffs imposed to their country and I think from 32% it became 19% as well.

Maybe but you must think about it more widely. Philipines already had a good tariff deal in terms of percentage so he could not lower it too much. If they gave Philippines 10% then other Asian countries may demand the same low percentage.

[romeitaly]

From the records, Donald Trump has only raised the tariffs by 2% for the Philippines and this is something to celebrate compared to what he has done for other countries. I may not know the value of these percentages in dollar terms but seeing that Philipines enjoy such level of love from Donald Trump is something to celebrate. There are countries facing as high is 20% raise on tariffs, not that I'm saying this is right but based on the realities on ground,  Philippines have every reason to celebrate. 

I think this should be the perspective that we need to look at when we ask why the government here in the Philippines is still celebrating even though it's just a 1% decrease on the tariff rate. Since the US or Trump has all the rights to set their own increase in  each country we must be glad on the 2% increase compared to 20% that you've said or even 50% on other countries as one member stated. Well most Filipino's doesn't understand much about negotiations and maintaining relationship with other countries but I must also agree that we must be glad that Trump still show some interest in the Philippines even though there are some reports that he is not happy with how the previous administration manage their relations with US. We may all hope all of this if for the betterment of both countries.

[Darker45]

The country isn't involved in a trade war with the US and yet the US has imposed an increase in the tariffs. Being subservient and a colony of Uncle Sam until today, the Philippines didn't retaliate.

Because the nation is a willing and a happy victim of the US' bullying, its president can be demanded to physically appear before King Trump anytime. Marcos is a loyal servant to the US. He dances when the US asks him to dance, barks when asked to bark, cries when asked to cry. Because of that, he's rewarded with a 1% decrease in tariff.

Marcos was so happy and proud the US gave him something. He took it as a huge victory. After spending millions, exerting time, effort, energy, leaving the nation just to nod and say 'yes' and smile at Trump, he came home bragging about the 1% discount.

The country is in the gutter.

[Japinat]

It's certainly a victory; we Brazilians will pay 50%...

Unfortunately, our country's president and his economic team lack the technical expertise necessary for negotiations. In addition to lacking diplomatic competence, they're taking sides where they shouldn't. Brazil has always been neutral on certain issues.

Trump caught many countries by surprise when he announced his tariffs. In this scenario, any reduction is valid, even if it seems insignificant. In the end, the sum total will be beneficial.

That's because of the trade war. We, the Philippines, do not have a trade war with the US… and they don’t pay tariffs or they pay only very minimal ones on their imports from our country. So why are they imposing high tariffs on us when we’re not doing the same?

Actually, I’m starting to think, what if we just buy products from China instead?

Like these:

Electronic equipment (phones, integrated circuits, monitors)
Vehicles and auto parts

All of these can be bought in China at cheaper prices… so I think the government should consider that, because it seems like the US is just bullying the Philippines with what they’re doing. If that tariff increase was really necessary, why did it only happen during Trump’s time? His actions seem more like bullying small nations even the big ones. If we stop importing, they won’t benefit from us.

What if we use Xiaomi instead of iPhone? I think we can live with that.

[Mr. Magkaisa]

This has been circulating online, and many Filipinos don’t seem impressed with the news. Before the president's visit, the tariff was 20%, and now it's 19%. They're calling it a “significant win,” but for real - is it?

What did Marcos gave to get a 1%? it is not a win but still a lose, Almost all country in the world lose on this. USA is getting the most out of it.
A very brilliant mind of Trump but a disaster to those affected. And this is not the end, He also add 200 USD for entering USA.

1% less on the tariff is a big win got the government. (dogshow) jus the news. But not really big, we were on lower percentage before.

[pooya87]

I am not familiar enough with East Asia to analyze this, and things like this are already hard to analyze. So correct me if I'm wrong but Philippine is generally considered a US dependent country. They have a lot of relations with the US including defense contracts. Their votes in the UN are also what the US regime wants (eg. generally voting against resolutions that demanded the genocide in Gaza to stop).

The only time they tried to change that and do the logical thing which is to get closer to their neighbors (namely China and Russia) was during Rodrigo Duterte presidency. It is worth reminding everyone that Duterte is currently in a prison in Netherlands charged with crimes against humanity!!!

I'm sure Bongbong doesn't want the same thing to happen to him which is probably why there is no reciprocation when it comes to the tariff war. I believe Bongbong Marcos actually eliminated tariffs on imports from US recently!

[DeathAngel]

Well a 1% discount is better than no discount. Some countries are being hit with much worse than 18% tariffs so maybe they can count themselves lucky or do something that will please Trump to reduce tariffs further. It seems that Trump is starting to get favourable deals so maybe he knew what he was doing after all.

[aylabadia05]

This has been circulating online, and many Filipinos don’t seem impressed with the news. Before the president's visit, the tariff was 20%, and now it's 19%. They're calling it a “significant win,” but for real - is it?

we impose lower tariffs (or even none at all) on U.S. products entering the country. so what exactly are we celebrating here?

Feels like we’re being taken for a ride, hyping up something that barely scratches the surface.
Almost like clapping for a clown just because he managed to entertain us so well.

The 19% tariff for the Philippines is the same as the tariff rate for my country. But the tax rate for American products entering our country is zero percent.

What's so commendable about this tax rate? On the one hand, local products exported to the American market will be more expensive, but on the other hand, it will reduce sales due to the high price. On the other hand, quality American goods, which are in demand in other countries, can be obtained at tax-free prices.

[abhiseshakana]

This has been circulating online, and many Filipinos don’t seem impressed with the news. Before the president's visit, the tariff was 20%, and now it's 19%. They're calling it a “significant win,” but for real - is it?

we impose lower tariffs (or even none at all) on U.S. products entering the country. so what exactly are we celebrating here?

Feels like we’re being taken for a ride, hyping up something that barely scratches the surface.
Almost like clapping for a clown just because he managed to entertain us so well.


https://www.philstar.com/business/2025/07/23/2460120/marcos-1-reduction-us-tariff-still-significant-achievement

MANILA, Philippines — After a historic visit to the White House yielded just a 1% reduction in US tariffs on Philippine goods, President Ferdinand Marcos Jr. still called it a win.

The tariff rate, previously at 17%, was raised by US President Donald Trump to 20% before Marcos’ visit.

Marcos met with Trump and other US officials to discuss defense and trade matters, with the Philippine side hoping to secure lower tariff rates.

“I can already tell everyone, as it’s come out already, that we managed to bring down the 20% tariff rate for the Philippines to 19. Now, 1% might seem like a very small concession. However, when you put it into – in real terms, it is a significant achievement,” Marcos said in a media interview released on Wednesday, July 23.

Marcos attributed the “special relationship” between the US and the Philippines.

What's Up with the 19%? Previously, Trump also signed a reciprocal tariff agreement with Indonesia at 19%, but with the additional condition of free transfer of personal data, which naturally raised concerns about data security threats and geopolitical issues. Unlike Indonesia, where the points of the agreement have been written down, the Philippines has yet to finalize the details of the agreement between the two countries.

In my opinion, almost all world leaders agree that the trade agreement with America was never a mutually beneficial agreement, but rather a one-way deal where in the end America had to profit more.  For Indonesia, although the tariff reduction from 32% to 19% seems impressive, the reality is that there are still commitments that Indonesia must fulfill, including purchasing US$4.5 billion worth of US agricultural products, US$15 billion worth of US energy products, purchasing 50 Boeing 777 aircraft, and providing full access to the Indonesian market. American goods enter the Indonesian market with a 0% tariff.

For Indonesia, this agreement, while seemingly detrimental, is actually beneficial. The existence of China-America trade tariff barriers has led China to use Indonesia as a pivot point. China has moved much of its manufacturing to Indonesia, which ultimately benefits both Indonesia and China from increasing Indonesia's trade volume with the United States.

Meanwhile, I see the Philippines positioning itself as the most anti-China country in Southeast Asia. This is fueled by the South China Sea conflict and the tensions in defense and security relations between China and the Philippines.

On the other hand, the historical defense and security relationship between the Philippines and the United States is deeply rooted in the Marcos Sr. administration, which is currently being continued by Marcos Jr. Therefore, the economic and trade relationship between the Philippines, China, and the United States follows primary national interests.