*Dr. Rodolfo
John Ortiz Teope, PhD, EdD
Let me start my post by talking about a simple but
significant word: tariff.
A tariff is a levy that you have to pay when you buy or sell
products from another country. Think about getting a car from another country.
If your government charges a 20% tariff, the car will cost 20% more. Tariffs
make it more expensive to buy goods from other countries, which helps local
businesses. But they can also produce problems between governments, especially
when one side thinks it's paying more than the other.
So, what does this mean?
In July 2025, President Ferdinand "Bongbong"
Marcos Jr. met with U.S. President Donald Trump in Washington to conclude a
trade deal. Under the deal, Philippine commodities sent to the U.S. would be
taxed at 19%, while U.S. goods sent to the Philippines would not be taxed at
all. It's not just about money. It's about independence, strategy, and how we
plan for the future of our country.
What the Philippines Could Gain
Let's start with the positive news. As a Filipino professor
and policy researcher, I see a few clear benefits.
1. Filipinos can buy U.S. goods for less.
When there are no taxes on U.S. goods, pharmaceuticals,
agricultural inputs like wheat and soy, and even machines and cars cost less.
This is a nice comfort for Filipino families who are having trouble with
inflation (Reuters, 2025). Hospitals might get medical equipment for less
money, while farmers may save money on feed and fertilizers.
2. Aligning strategically with a global power
This deal makes the Philippines' relationship with the
United States stronger. Being considered as a trustworthy U.S. partner in the
Asia-Pacific area, which is getting more hostile, might have military,
economic, and diplomatic benefits (Channel NewsAsia, 2025). President Marcos
said it was a "victory for stability," which shows that the
Philippines is willing to work with other countries.
3. A Small Edge Over Neighbors in the Region
Vietnam and Indonesia are said to have agreed to a 20%
tariff on the same grounds. The Philippines seems more competitive with a 19%
rate, notably in areas like electronics and business process outsourcing (Asean
Briefing, 2025). Some of our tech-related exports are completely free from the
tariff because of agreements made by the World Trade Organization.
4. Chance for new investment
As American businesses try to move their supply chains away from China, the Philippines may gain from being perceived as a stable, tariff-friendly option. If we do things right, like putting money into infrastructure and cutting down on red tape, this pact might lead to factories, jobs, and centers for innovation.
But there are real costs as well.
But we can't ignore what this deal also takes away.
1. Tariffs of 19% make Filipino goods less competitive.
Our clothes, seafood, coconut products, and many other
agricultural exports now have a hard time getting into the U.S. market. That
19% price rise could make American buyers look for cheaper solutions in foreign
countries. This will have an immediate effect on exporters (South China Morning
Post, 2025).
2. Local businesses can be pushed out
If there were no taxes on U.S. imports, our marketplaces
could be flooded with items from other countries. Local manufacturers, who are
already having a hard time, might not be able to compete. Think about how a
small car parts store in Laguna can lose business to cheaper, tax-free imports
from Detroit or Texas. These firms might have to close or cut back if they
don't get help.
3. The trade gap could get bigger.
When a country purchases more than it exports, it has a
trade imbalance. Because of this contract, the Philippines might acquire more
from the U.S. than it can sell back. That mismatch can have an effect on our
money, employment growth, and the long-term health of our economy (Reuters,
2025).
4. The terms of the deal seem unfair.
A lot of observers say that we gave up too much and got too little in return. The U.S. put a 19% tariff on goods, but we got rid of ours completely. It's like giving up a whole meal for a short snack. Marcos was happy with the deal, but others say it was "one-sided diplomacy" (Channel NewsAsia, 2025).
What Can Be Done?
This is only the start, not the end. Like tools, trade
treaties are only as good as the way we use them.
First, we need to provide our exporters money, training, and
new ideas to help them compete even when there are tariffs.
Second, the government should help industries that are
affected by the changes, such as local automakers, agri-processors, and small
manufacturers.
Third, let's put money into infrastructure and digitization
so that we can satisfy the growing demands of trade more quickly.
Finally, we need to open up new markets for our exports. We need strong ties with ASEAN, Japan, India, and the EU in case the U.S. becomes too expensive or unstable.
A Personal Reflection
As a Filipino educator, I think that economic diplomacy is a
tricky and strategic skill that needs both bravery and caution. We might not be
the most powerful country in the world, but we are proud, smart, and full of
talent and potential. We shouldn't just accept deals that put us at a
disadvantage, though. Instead, it implies that we need to negotiate with
dignity—firm but fair, ambitious but realistic, visionary but always practical.
This new tariff agreement isn't a failure; it's a wake-up call.
It means that we can't depend on old alliances or courteous handshakes to shape
our economic future anymore. People may cheer when we sign agreements in other
countries, but the actual work starts at home: in our schools, factories,
farms, ports, and innovation centers. You don't guarantee progress; you prepare
for it.
Don't let this moment be characterized by naive jubilation, as if headlines alone can sustain a population. Instead, let it be a call to action:
to put money into our industries, protect our workers, give our exporters more
power, and build a country that can compete not by making deals, but by being
smart and creative. Those who prepare with purpose, not those who are the
strongest, will own the future.
References
Asean Briefing. (2025, July 24). Inside the Philippines–U.S.
trade deal: Zero tariffs for America, 19% for Manila. Retrieved from
https://www.aseanbriefing.com
Channel NewsAsia. (2025, July 23). Marcos–Trump tariff deal:
Who wins, who loses? Retrieved from https://www.channelnewsasia.com
Reuters. (2025, July 22). Trump says US, Philippines ‘very
close’ to finalizing trade deal. Retrieved from https://www.reuters.com
South China Morning Post. (2025). Philippines gets the short end of the tariff stick? Retrieved from https://www.scmp.com
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*About the author:
Dr. Rodolfo
“John” Ortiz Teope is a distinguished Filipino academic, public intellectual,
and advocate for civic education and public safety, whose work spans local
academies and international security circles. With a career rooted in teaching,
research, policy, and public engagement, he bridges theory and practice by
making meaningful contributions to academic discourse, civic education, and
public policy. Dr. Teope is widely respected for his critical scholarship in
education, management, economics, doctrine development, and public safety; his
grassroots involvement in government and non-government organizations; his
influential media presence promoting democratic values and civic consciousness;
and his ethical leadership grounded in Filipino nationalism and public service.
As a true public intellectual, he exemplifies how research, advocacy,
governance, and education can work together in pursuit of the nation’s moral
and civic mission
