Manila: The Philippines is unlikely to be a target of the planned tariff hikes under the incoming administration of United States President-elect Donald Trump, according to Department of Trade and Industry (DTI) Undersecretary Ceferino Rodolfo. He emphasized the balanced and healthy trade relationship between the two countries as a significant factor in this assessment.

According to Philippines News Agency, Rodolfo noted that the Philippines’ trade deficit with the US is considerably smaller compared to other Asian countries. In 2023, the trade deficit stood at USD4 billion, a stark contrast to China’s USD300 billion, Vietnam’s USD109 billion, Japan’s USD75 billion, South Korea’s USD55 billion, India’s USD47 billion, and Thailand’s USD43 billion. Rodolfo stated, “We believe that countries with which the US has a huge trade deficit-particularly those which worsened during the past four years-will be likely targets of additional US tariffs.”

He further explained that the Philippines is in a strong position as
the US aims to address trade imbalances. The DTI official added, “With the Trump administration’s focus on reducing trade deficit, the Philippines can leverage the balanced and healthy Philippines-US trade, indicating a mutually beneficial trade relationship.”

Rodolfo also highlighted ongoing efforts to strengthen ties between the two nations. DTI Secretary Cristina Roque and Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go are collaborating closely with the US government to ensure even closer economic relations with the long-time ally as Trump prepares to take office.

He pointed out that Senator Marco Rubio, Trump’s pick for Department of State Secretary, has been a strong advocate for closer economic and strategic ties between the US and the Philippines. Rubio filed Senate Bill 4703, known as the Philippines-US Strategic Partnership Act, on July 11, 2024. The bill aims to enhance economic relations between the two countries, proposing negotiations for a critica
l minerals agreement with the Philippines, prioritizing support from the US International Development Finance Corporation for projects in the country, and identifying additional US agencies that could invest in the Philippines, including the Department of Defense’s Office of Strategic Capital.

Rodolfo added that Trump has previously expressed interest in negotiating a free trade agreement with the Philippines. Former US Trade Representative Robert Lighthizer noted in 2017 that such an agreement would be a high priority for the administration.