US gives 0% tariffs to Thailand, Malaysia, and Cambodia but not the Philippines

[Kasabus]

So the US just gave 0% import tariffs to some ASEAN countries like Thailand, Malaysia, and Cambodia. In return, Thailand agreed to buy billions worth of US goods, and Malaysia got deals on stuff like aerospace and palm oil.

But here’s the thing,  why are we not part of it?
Did the US skip us because of our government’s corruption issues? Or maybe they just don’t see the Philippines as a stable or reliable trade partner right now?

Feels like other ASEAN countries are moving ahead while we’re stuck.
What do you guys think, is it politics, economics, or just our bad image again?

[ source] https://www.nationthailand.com/business/economy/40057374

[abhiseshakana]

The US tariff war and market access are part of a geopolitical package that serves US national interests. The Philippines is a classic example of a geopolitical anomaly. For Trump, the Mutual Defense Treaty is not an anti-trade preemption. US technical considerations include the fact that many Philippine products are in low-value-added rather than strategic sectors, and that the Philippines serves as a military base for security, not a manufacturing facility. In US reindustrialization, the Philippines does not meet the criteria for a friend-shoring partner (high-tech and mature EV/semiconductor manufacturing is required). For Trump, money is money. Considering the Philippines' trade balance, which makes China its largest trading partner and a member of the Belt and Road Initiative (BRI), this has prompted the US to take safeguards, particularly against the practice of transshipping Chinese products through the Philippines. The Philippines' non-aligned policy also prevented the Philippines from signing an FTA with the US. Trump separates geopolitical loyalty from trade benefits.

Isn't it ironic? The stronger the Philippines' military ties with the US, the narrower its economic space. Why? Because the US doesn't want the Philippines to become financially independent. We can compare Cambodia (no military ties with the US, pro-China, and very strong economic ties with China) to the Philippines (a full US ally with very strong economic ties with China). The goal is simply to maintain the Philippines as a US buffer state in the Indo-Pacific region and prevent it from becoming an industrial substitute for China. Excessive economic authority/incentives for the Philippines, coupled with ambiguous economic loyalties, political fragility, and bureaucratic corruption, raise concerns about the leakage of economic incentive profits to China.

For my country, my finance minister actually stated that the war Tariffs actually benefit Indonesia by dismantling global supply chains, opening markets and demand, and attracting manufacturing relocation domestically. Indonesia's profile as a swing state that remains open-frontier with an active neutral foreign policy, a large population (both market and labor force), rich mineral resources (nickel, bauxite), raw materials for green energy and electric vehicles (EVs), and control of the chokepoint between the Indian and Pacific Oceans, makes Indonesia a potential US friend-shoring candidate.

The direct benefits of a tariff war for Indonesia include the diversion effect of Chinese and US manufacturing investment, rising prices of strategic commodities (nickel, tin, and crude palm oil) due to disruptions to the global supply chain, and increased diplomatic bargaining power (the Non-Aligned Movement, aka playing both sides).

[stadus]

Isn't it ironic? The stronger the Philippines' military ties with the US, the narrower its economic space. Why? Because the US doesn't want the Philippines to become financially independent.

I also have another thought, it could be because of the current leader, who some believe is weak. If you look at the dollar-to-peso rate, the peso’s purchasing power keeps dropping, which shows the economy is struggling. It’s all tied to the bad image the Philippines has right now. I don’t want to speculate too much, but that’s really the issue in the country, corruption is a major reason why Trump didn’t give this good news to the PH.

[coupable]

So the US just gave 0% import tariffs to some ASEAN countries like Thailand, Malaysia, and Cambodia. In return, Thailand agreed to buy billions worth of US goods, and Malaysia got deals on stuff like aerospace and palm oil.

But here’s the thing,  why are we not part of it?
Did the US skip us because of our government’s corruption issues? Or maybe they just don’t see the Philippines as a stable or reliable trade partner right now?

Thailand, Malaysia, and Cambodia benefited from trade agreements with the US that allows them to export their goods with great reduce in tariffs or even without tariffs at all. This made by programs like "Free Trade Agreement" or "Tariff Exemption Programs" that allows some develpping countries to enter the US market without major restrictions. As for Philippines, it is out of those agreements because some goods/economic sectors aren't included.

[Odohu]

So the US just gave 0% import tariffs to some ASEAN countries like Thailand, Malaysia, and Cambodia. In return, Thailand agreed to buy billions worth of US goods, and Malaysia got deals on stuff like aerospace and palm oil.

But here’s the thing,  why are we not part of it?
Did the US skip us because of our government’s corruption issues? Or maybe they just don’t see the Philippines as a stable or reliable trade partner right now?

Feels like other ASEAN countries are moving ahead while we’re stuck.
What do you guys think, is it politics, economics, or just our bad image again?

[ source] https://www.nationthailand.com/business/economy/40057374

It is all about balancing of trade for the US, they will always go for the policy that will favor them the most. If they gave 0% tariffs to those countries, that means they know what they will benefit in return, as you can see from the post that those countries are going to reciprocate by buying billions of goods from the US. If they did not see any benefit from such decision, they will not go ahead to use it because the new US administration is all about what will benefit them the most.

[blockman]

His spokespeople are even telling the media that he declined the 0% offer. I don't think that there is a real offer in there. He's not that given importance to the meeting with the ASEAN and with Trump. He's a decoy and not a real leader per se because we've got a lot of US army bases here and yet, he's not offered with that. The reason as said by his representatives, it's that it's going to affect local productions and businesses. I don't get it, it's even in favor in all of them if they are important ingredients, raw materials and other things from the US.

[aioc]

His spokespeople are even telling the media that he declined the 0% offer. I don't think that there is a real offer in there. He's not that given importance to the meeting with the ASEAN and with Trump. He's a decoy and not a real leader per se because we've got a lot of US army bases here and yet, he's not offered with that. The reason as said by his representatives, it's that it's going to affect local productions and businesses. I don't get it, it's even in favor in all of them if they are important ingredients, raw materials and other things from the US.

I considered it an insult; the US is considered the longest ally of the Philippines; they should have been given a fair trade agreement. With this, we can say that the US will not honor its agreement in case the Philippines goes to war, the next president of the Philippines should do better in managing the economy and corruption, the news of corruption is taking its toll on the Philippines' image in trade agreements, rendering it unworthy to trade with.
As for the spokespeople, she is good at lying that we don't know the truth and the lies in her announcement.

[PX-Z]

Isn't it ironic? The stronger the Philippines' military ties with the US, the narrower its economic space. Why? Because the US doesn't want the Philippines to become financially independent.

I also have another thought, it could be because of the current leader, who some believe is weak. If you look at the dollar-to-peso rate, the peso’s purchasing power keeps dropping, which shows the economy is struggling. It’s all tied to the bad image the Philippines has right now. I don’t want to speculate too much, but that’s really the issue in the country, corruption is a major reason why Trump didn’t give this good news to the PH.

I agree with both points. The first one is true, its the very observed reason since the US established military bases in PH decades ago. As for the second, the country is indeed drowning in corruption, led by a weak leader who seems incapable of handling serious issues. Yet he still manages to face the public as if nothing's happening under his watch.

[robelneo]

But here’s the thing,  why are we not part of it?
Did the US skip us because of our government’s corruption issues? Or maybe they just don’t see the Philippines as a stable or reliable trade partner right now?

Bad images echo everywhere; this is like saying that you are not worthy to be a trade partner. It's hard to fix a heavily plundered country where corruption is part of its culture, and it's hard to be a representative of that country. I wonder how PBBM, the president, handles the situation.
Better luck next time to our next president. I hope the country will be more selective in its votes. The only way to eradicate corruption is to vote for clean people. For the longest time, its citizen keeps voting thieves, because these thieves can easily manipulate the people's minds; there should be a change in how its citizens vote

[rodskee]

Isn't it ironic? The stronger the Philippines' military ties with the US, the narrower its economic space. Why? Because the US doesn't want the Philippines to become financially independent.

I also have another thought, it could be because of the current leader, who some believe is weak. If you look at the dollar-to-peso rate, the peso’s purchasing power keeps dropping, which shows the economy is struggling. It’s all tied to the bad image the Philippines has right now. I don’t want to speculate too much, but that’s really the issue in the country, corruption is a major reason why Trump didn’t give this good news to the PH.

it’s unfortunate i am sure philippines thought that they had a good relationship with the us but this is politics after all us will only help those they actually benefit from so if they don’t think philippines is worthy of the 0% well then..

[JeffBrad12]

I'm sure it's about more of what you can bring to the table. The more you open your market to the US, the more likely you gonna get 0% tariff.
There are other factors as well but as I can see from watching trump making tariff negotiation around the world, this seems to be the key.

[Yaunfitda]

It's because he can easily manipulate Ferdinand Marcos, unlike any other Asean leader that is really hard to compromise. I remember when Marcos visited the US earlier, and instead of getting a good tariff, it went backward. Now, Trump makes it worst and probably he doesn't like Marcos at all. Now Marcos has nowhere to go, they and his defense minister are bad mouthing China so he can't go back to them and ask for anything. And with the news of corruption in the Philippines, I think the country really needs a great leader to fight all the corruption and put the Philippines back in the map. And for me, this should not be taken lightly by the Philippines, and could mean that they might not be the ally that they think of the US.

[NewRanger]

I'm sure it's about more of what you can bring to the table. The more you open your market to the US, the more likely you gonna get 0% tariff.
There are other factors as well but as I can see from watching trump making tariff negotiation around the world, this seems to be the key.

And my long-held prediction has finally been answered. Yes, they do respect those who haven't joined the anti-dollar countries. Consider the difference between those who have tried and those who have joined the anti-dollar countries. Of course, the treatment is different.

[abhiseshakana]

Isn't it ironic? The stronger the Philippines' military ties with the US, the narrower its economic space. Why? Because the US doesn't want the Philippines to become financially independent.

I also have another thought, it could be because of the current leader, who some believe is weak. If you look at the dollar-to-peso rate, the peso’s purchasing power keeps dropping, which shows the economy is struggling. It’s all tied to the bad image the Philippines has right now. I don’t want to speculate too much, but that’s really the issue in the country, corruption is a major reason why Trump didn’t give this good news to the PH.

Perhaps for Trump, Ferdinand "Bongbong" Marcos Jr. is friendly but fragile. I also support the slogan "materials follow performance." The 19% for the Philippines could also be concluded that Bongbong failed to transform military alliances into economic leverage, although the Philippines is trusted with weapons, but not with markets. Even if Bongbong's incompetence is dominant, the US has a geostrategic agenda in ASEAN: pressuring China through economic containment and creating alternative supply chains within ASEAN (Vietnam, Malaysia, and Indonesia). Maintaining the Philippines as a military hub, not an economic hub (industrial expansion).

Therefore, lowering tariffs on Philippine exports is irrelevant to US strategic objectives. Furthermore, with a 19% tariff, the Philippines remains dependent on US and Japanese aid to prevent rapid growth, and to negotiate independently and avoid industrial duplication in the region (as the capacity of Vietnam, Malaysia, and Indonesia is already sufficient for the Indo-Pacific supply chain).

Bongbong is perhaps the president with the weakest technocratic capacity since the Estrada era, marked by a lack of policy synchronization between the Ministry of Finance, the Central Bank, and the Ministry of Trade, high inflation, a high corruption index, high fiscal and trade deficits, and the lack of a downstream industrial roadmap. The signals the US received were incompetent leadership, policy inconsistency, and problems. All of this reinforced the US perception that high tariffs were necessary as a control measure to prevent the Philippines from exporting its domestic problems to the US market.

[Zlantann]

Feels like other ASEAN countries are moving ahead while we’re stuck.
What do you guys think, is it politics, economics, or just our bad image again?

The Philippines might have been on the news for some time now because of corruption. But I think this 0% import from the US has its disadvantages.  These nations that enjoy this privilege from the US will open up their economy for US businesses. The inability of a country to restrict the access of other countries to its economy might have negative consequences on local industries. Goods from the US might be relatively cheaper than locally produced ones.

It now means that Filipinos would abandon locally produced goods for cheaper and higher-quality American products. Local industries might go bankrupt due to low patronage, which might also cause unemployment and an unfavourable balance of payments. Not granting 100% access to the US and settling for a 19% tariff might look bad on the surface, but it has some benefits.

[The Cryptovator]

So the US just gave 0% import tariffs to some ASEAN countries like Thailand, Malaysia, and Cambodia. In return, Thailand agreed to buy billions worth of US goods, and Malaysia got deals on stuff like aerospace and palm oil.

The US always will think about their own benefits, which means when they applied a 0% tariff, there was some reason behind it. They might have to import something big from Malaysia, Thailand and Cambodia. Or they might have a good relationship with these presidents, but the US will definitely think first about its profits.

But here’s the thing,  why are we not part of it?
Did the US skip us because of our government’s corruption issues? Or maybe they just don’t see the Philippines as a stable or reliable trade partner right now?

Feels like other ASEAN countries are moving ahead while we’re stuck.
What do you guys think, is it politics, economics, or just our bad image again?

These are actually geopolitical issues. I don't live in the Philippines but have heard about the corruption. So I believe the US doesn't have a good geopolitical connection with the Philippines. Or the US doesn't think they would get any advantage from the Philippines if they apply zero percentage tariff. In this situation the Philippines government should meet and cooperate with the US regarding tariffs. Like China trying to negotiate the tariff, the Philippines should do the same things.

[Lucius]

~snip~
But here’s the thing,  why are we not part of it?
Did the US skip us because of our government’s corruption issues? Or maybe they just don’t see the Philippines as a stable or reliable trade partner right now?

Everyone knows that DT can be bought with expensive (but also cheap) gifts - and obviously your politicians are not skilled in diplomacy in that way. A video of him dancing at a reception in Malaysia went viral, so let someone ask why he lowered their tariffs to 0%, but not yours

It may sound strange, but what to say about the people who crucify the president of Ukraine in the White House because he didn't wear a tie while at the same time his country is burning and bleeding? It all came down to whether a man has a tie or not, and now the question is what your president has or doesn't have.

[₿itcoin]

But here’s the thing,  why are we not part of it?
Did the US skip us because of our government’s corruption issues? Or maybe they just don’t see the Philippines as a stable or reliable trade partner right now?

Feels like other ASEAN countries are moving ahead while we’re stuck.
What do you guys think, is it politics, economics, or just our bad image again?

In fact, the recent announcement by the United States of a 0% tariff on certain products from Thailand, Malaysia &  Cambodia that the Philippines was not on the list was a surprise to many in attendance. However, the Philippine administration later clarified that the Philippines was not completely excluded,, in fact, the agreement has not yet been finalized for all products.

Now, this situation is not just about corruption or image. Much depends on which products will be included and what the terms of the agreement will be. Politics certainly plays a role, but business priorities and other issues during the negotiations are also important.

[Fortify]

So the US just gave 0% import tariffs to some ASEAN countries like Thailand, Malaysia, and Cambodia. In return, Thailand agreed to buy billions worth of US goods, and Malaysia got deals on stuff like aerospace and palm oil.

But here’s the thing,  why are we not part of it?
Did the US skip us because of our government’s corruption issues? Or maybe they just don’t see the Philippines as a stable or reliable trade partner right now?

Feels like other ASEAN countries are moving ahead while we’re stuck.
What do you guys think, is it politics, economics, or just our bad image again?

There's no logic, sense or strategy in the way that Trump imposes tariffs. It's merely whatever he comes up with on the spur of the moment or whatever he read in his spaghettio's in the morning. Trying to find any reasoning in it will just leave you lost and with a head ache. Was it because the leader somehow slighted him, like not bowing enough to his majesty. Or was it because he read a sentence out of a study that said the Philippines were the top exporter of a certain product and he thought automatically that America should be there - even if it has no relevance. There are so many ways that the petty orange man gets offended it's too difficult to track. Next week he might decide to pay the Philippines to import goods or impose a 250% tariff on any of the people he agreed deals with this week, it's illogical and terrible for world trade.

[joniboini]

Or was it because he read a sentence out of a study that said the Philippines were the top exporter of a certain product and he thought automatically that America should be there - even if it has no relevance. There are so many ways that the petty orange man gets offended it's too difficult to track.

This made me recall that the reason why he imposes a relatively high tariff on my country is that we used to tax them quite high in the past, but only for one product that's no longer in demand. It also happened years ago. So yeah, it kinda sounds like petty revenge in the sense that the reason and his action don't match. At least he managed to make people focus on his action instead of what his real goal is (if any exists).