Trump, Marcos Hold High-Stakes Trade Talks as Tariff Deadline Nears

 During their high-stakes bilateral meeting at the White House on July 22, 2025, former U.S. President Donald Trump acknowledged that trade negotiations with Philippine President Ferdinand Marcos Jr. had not yet reached a final agreement, citing Marcos as a “very tough negotiator.” Trump’s remark—“So far we're not yet there because he's negotiating too tough... But we'll probably agree to something”—underscored the tense but active nature of the talks.

At the heart of the negotiation is a proposed reciprocal trade deal that would reshape economic relations between the two countries. The U.S. is pushing for zero tariffs on American goods entering the Philippines, aiming to open the Southeast Asian market to U.S. exports without barriers. In contrast, the Philippines is being asked to accept a 19% tariff on its own exports to the U.S.—a rate just shy of the 20% penalty Trump threatened to impose if no deal is reached by August 1.

This imbalance has sparked debate in Manila, where critics argue the deal could disproportionately benefit the U.S. and strain Philippine industries. Finance Secretary Ralph Recto has hinted that the Philippines may offer zero tariffs on select U.S. goods to soften the impact, but negotiations remain delicate.

Despite the friction, both leaders expressed optimism. Trump praised Marcos as “highly respected” and “a very good, and tough, negotiator,” while Marcos emphasized the importance of a mutually beneficial agreement that strengthens both economies and deepens strategic ties.

The urgency is compounded by broader geopolitical stakes. The U.S. sees the Philippines as a key ally in the Indo-Pacific, especially amid rising tensions in the South China Sea. A successful trade deal would not only boost commerce but also reinforce military cooperation under the Mutual Defense Treaty, which both sides reaffirmed during the visit.

In short, while the deal isn’t sealed, the tone is cautiously hopeful. The next few days will be critical as negotiators race against the looming tariff deadline.