| Photo by Patrick Henry on Unsplash
The freshly inked trade deal between Presidents Marcos Jr. and Trump may seem like a win for Filipino-American consumers. A 19% tariff—just one notch down from the threatened 20%—on Philippine exports is paired with a sweeping removal of tariffs on U.S. goods entering the Philippines. American products will flood Filipino markets, and diaspora households might rejoice at cheaper prices when sending goods or coordinating business.
However, beneath this surface-level “win” lies a troubling paradox: Filipino Americans are being courted as consumers, not consulted as co-architects of an equitable economy.
Remittances: The Real Economic Engine. Filipinos in the U.S. send an estimated $38 billion annually back to the Philippines, making remittances the nation’s single largest source of foreign exchange. Yet the same deal that opens up markets for U.S. goods fails to recognize the economic leverage and familial lifelines that Filipinos in the U.S. provide. Worse still, proposals to tax remittances—still lurking in policy circles—compound the burden that Filipino families face in an already asymmetric system.
Structural Imbalances Amplified. The Philippines, now forced into an open-market posture, must absorb subsidized U.S. imports while its exporters pay a steep premium to reach American shelves. This dynamic not only disadvantages small Filipino producers but also erodes economic sovereignty. Meanwhile, diaspora remittances are viewed not as developmental tools but as taxable revenue.
Fil-Ams: Consumed but Not Consulted The Marcos administration’s decision to skip a town hall with the Filipino-American community underscores a larger trend: diaspora communities are rarely invited to the table, even as they fund households, supply businesses, and drive demand. Our economic role is systemic, yet structurally undervalued.
Call to Collective Action: Filipino-Americans must begin treating economic justice as a civic imperative. That means:
- Advocating against remittance taxation and for diaspora equity in policy consultations
- Elevating consumer awareness about how trade impacts domestic industries in the Philippines
- Organizing community forums to shape remittance narratives beyond charity, toward empowerment and co-development
This trade deal should be a wake-up call. We are not just senders—we are stakeholders. It’s time for our economic power to translate into political clout.
