President Marcos at the Oval Office with President Trump | Photo by Troi Santos
We may seem biased, but overall, President Marcos’s official trip to Washington, DC was very successful and, more importantly, consequential. President Donald Trump is known for placing great value on personal relationships and connections in meeting heads of state. Undoubtedly, President Marcos immediately connected, as seen in the warm and cordial greeting from the US president, which began at the entrance of the White House. The amiability and rapport between the two leaders were immediately noticeable to the reporters gathered outside the West Wing.
In the Oval Office, the mood was genial – a stark contrast to the tense atmosphere during President Trump’s meetings with other world leaders, which he described as a “beautiful visit” on his Truth Social media platform.
Not surprisingly, the usual suspects are criticizing the visit, choosing to overlook the fact that it underscored the strategic alignment between the two countries and reaffirmed the mutual commitment to further strengthen the partnership in terms of defense, security, and economic prosperity. The discussion also centered on enhanced cooperation in cybersecurity, energy supply resilience, and critical infrastructure, all of which are essential facets that would make the Philippines a more viable investment destination.
The President’s meetings with American business executives also resulted in $21 billion worth of investment pledges to the Philippines. One of these is Ohio-based, $ 15 billion healthcare company Bon Secours Mercy Health, which plans to invest up to $500 million in a state-of-the-art tertiary hospital in the Philippines. BSMH president and CEO John Starcher is a personal friend of President Trump. He visited Manila early this year and had a meeting with President Marcos, during which he indicated plans to invest more in the Philippines.
During their first in-person meeting, President Marcos and President Trump reaffirmed both nations’ ironclad commitment to the Mutual Defense Treaty. As we all know, the US recognizes the importance of establishing deterrence in the Indo-Pacific region. It has also consistently shown its support for maintaining peace and stability in the area and upholding the rule of law in the South China Sea.
On the question of tariffs, detractors are making disparaging comments, claiming that we have given the shop away, so to speak, with the imposition of a 19 percent tariff on Philippine exports. At the same time, the US will have zero tariffs. However, as we explained during my interview on dzRH radio with Anthony Taberna and Gerry Baja, the 19 percent announced by the US president is still subject to several discussions on the details to be hammered out between our economic team and US Trade officials.
Regarding zero tariffs on US products, this will only be applied to specific sectors, such as automobiles and pharmaceuticals, but not to key sectors, particularly agriculture, to protect our farmers and the industry.
Special Assistant to the President for Investment and Economic Affairs Frederick Go explained it very well during his press briefing in Malacañang, stating that the tariffs are universal, meaning they are imposed by the US on the entire world, not just on the Philippines. He also explained that Filipinos will not pay tariffs. Still, rather than importers and American consumers who buy goods exported by the Philippines to the United States, the same principle will also apply to all other countries.
“We are hopeful we can still reduce the tariff when negotiations with the US Trade Representative continue. While the reduction to a 20 percent tariff, imposed by President Trump earlier, was only one percentage point, it is worth noting that the Philippines has no conditions or deep concessions to fulfill, unlike other countries.”
He also clarified that the zero-tariff concessions extended to the US are strategic to the Philippines and do not include fish, seafood, and agricultural products such as sugar, corn, rice, pork, and chicken, which are intended to protect our farmers and fisherfolk. The zero tariff will only apply to products that the Philippines does not manufacture, or only produces in minimal quantities, he further explained.
Secretary Go disclosed that the 19 percent rate is already one of the lowest in Southeast Asia, second only to Singapore’s 10 percent, and this presents an opportunity to attract foreign direct investors to establish businesses in the Philippines and export their products to the US.
We are hopeful we can still reduce the tariff when negotiations with the US Trade Representative continue. While the reduction to a 20 percent tariff, imposed by President Trump earlier, was only one percentage point, it is worth noting that the Philippines has no conditions or deep concessions to fulfill, unlike other countries. Japan, for instance, will face a 15 percent tariff but also invest $500 billion in the US. In contrast, Indonesia, with a 19 percent tariff similar to the Philippines, will have to purchase 50 Boeing aircraft.
More than the “numbers” from tariffs, the Philippines and the United States have much more to offer each other in terms of strategic alignment, political goodwill, and reliability as allies who share the goal of preserving regional peace and stability in the Indo-Pacific region.
One significant asset that Filipinos have always possessed is resilience. To such an extent that we have been likened to the bamboo tree, as we maintain the flexibility to sway with the wind and bend without breaking. President Marcos has repeatedly demonstrated what resilience is all about, navigating challenging situations with composure and displaying quiet strength and toughness.
But more importantly, Filipinos should have the ability to look at the forest and not just the trees, meaning we should see the big picture rather than being fixated on small details. In the case of these worldwide tariffs, we should focus on seizing the opportunities and using them to our advantage. In other words, seize the moment before the moment seizes us.
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