US-Philippines Reach New Trade, Military Deal

President Donald Trump and Philippine President Ferdinand Marcos Jr. announced a new trade agreement after their White House meeting, replacing a threatened 20% tariff with a 19% U.S. tariff on Philippine imports. In exchange, the Philippines will grant zero tariffs to certain U.S. goods. The agreement also includes plans for enhanced military cooperation, reinforcing the U.S.-Philippines alliance amid Indo-Pacific tensions with China. While both leaders praised the partnership and its strategic value, details of the deal remain unclear and have not been fully confirmed by the Marcos administration. Questions have emerged in Manila about the economic impact of the higher-than-expected tariff. The deal was reached just before an August 1 deadline that would have triggered steeper tariffs without an agreement.