Philippines urged to ‘double down’ in talks over 20% tariff with Trump

The move by US President Donald Trump to impose a higher-than-expected tariff on the Philippines signals his unwavering determination to pressure Washington’s trade partners to do their part in reducing the US deficit in tandem with its intensifying rivalry with China, according to analysts.

Trump announced on Wednesday that the tariff on Philippine exports to the US would be 20 per cent, above the 17 per cent that he had previously threatened to impose.

He said Washington’s trade partners were engaging in unfair trade practices, leading to “unsustainable” deficits that he claimed were threatening US national security. Washington has said that these trade partners are enjoying lopsided access to the US while growing their economic ties with China.

The Philippines was among seven nations targeted in the latest round of tariff notices issued by Washington on Wednesday, alongside Algeria, Brunei, Iraq, Libya, Moldova and Sri Lanka.

“Our relationship has, unfortunately, been far from reciprocal,” Trump wrote in a letter addressed to the Philippine government.

“Tariffs are necessary to correct the many years of the Philippines’ tariff and non-tariff policies and trade barriers, causing these unsustainable trade deficits against the United States.”