Recto: Philippines open to strategic tariff cuts to boost U.S. trade

The Philippines is open to reducing tariffs on select goods from the United States as part of a broader strategy to counter a proposed 20 percent tariff on Philippine exports, Finance Secretary Ralph Recto said.

Speaking during an informal press chat, Recto clarified that the move would only apply to a limited set of U.S. products. “Not for all products but we have identified a set of products,” he said, adding that the aim is to secure reciprocal lower or zero tariffs from the U.S. in return.

Recto noted that the potential economic impact of such tariff adjustments had already been calculated and discussed with Special Assistant to the President on Investment and Economic Affairs Secretary Frederick Go.

“All of that has been computed. And it’s safe to say that we’re okay in terms of losses,” he said. “We want to reduce whatever duties they impose on our products.”

The United States remains the Philippines’ top export market, accounting for USD1.115 billion or 15.3 percent of total exports in May 2025, according to the Philippine Statistics Authority.

In addition to reciprocal tariff negotiations, Recto emphasized the country’s ongoing push for a formal free trade agreement (FTA) with the U.S. and other global partners.

“We prefer that. We want to have an FTA. Not only with the U.S. but with Europe and many other countries,” Recto said. “More trade should be done. We have to expand our markets. Get more investments in manufacturing so that we can export more.”

The Philippines currently has limited access to preferential trade arrangements with the U.S., and government officials have been seeking avenues to expand trade and investment through formal agreements and targeted economic diplomacy.