The United States has announced a significant tariff hike on Philippine exports with U.S. President Donald Trump issuing a formal directive imposing a 20% duty on goods coming from the country starting August 1.
In a letter sent Wednesday, Trump said the decision was made in response to what he called “long-standing trade imbalances” and “non-reciprocal trade practices” between the U.S. and the Philippines.
“We have had years to discuss our trading relationship with the Philippines, and have concluded that we must move away from these long-term, and very persistent,” Trump said.
“Trade Deficits engendered by the Philippines’ Tarift, and Non-Tariff, Policies and Trade Barriers. Our relationship has been, unfortunately, far from reciprocal,” he added.
The Philippines was one of seven countries named in the new round of tariff letters, which also targeted Algeria, Brunei, Iraq, Libya, Moldova, and Sri Lanka.
The new 20% tariff for the Philippines replaces an earlier 17% rate announced in April, most of which had been suspended until July 9. The revised rate is now set to take effect in full by August 1.
