Philippines Dismisses US Tariff Reduction as Insignificant

Acting Davao City Mayor Sebastian Duterte criticized the one percent reduction in the tariff on Philippine goods from 20 percent to 19 percent, calling it 'consuelo de bobo' or a false consolation.

Duterte questioned the significance of the announcement and urged the public to seek clear information on how the Philippines' trade deal compared to those of other countries.

President Ferdinand R. Marcos Jr.'s recent trade talks with US President Donald Trump resulted in a one percentage point cut in the current 20 percent tariff on Philippine exports, set to take effect next month.

In exchange for this concession, the Philippines agreed to eliminate tariffs on American automobiles and other products while committing to increase imports from the US.

Following their meeting, Trump announced that Philippine goods would now face a 19 percent tariff, provided the Philippines maintains an 'open market' stance towards US exports.

Duterte criticized Marcos for praising the mere one percent tariff cut, questioning its significance.

Rep. Paolo Duterte described the tariff cut as an unfinished negotiation and expressed skepticism about its benefits for Filipino businesses.

Sen. Imee Marcos also raised concerns about the tariff arrangement that heavily favors American imports.

According to the Philippine Statistics Authority, the US was the largest market for Philippine exports in May, while China remained the top source of imports for the Philippines.