Trump announced the broad terms of the agreement on his social media network Tuesday and added that the US and the Philippines would work together militarily. The announcement of a loose framework of a deal comes as the two countries are seeking closer security and economic ties in the face of shifting geopolitics in the Indo-Pacific region.
“Today, the United States of America and the Republic of Indonesia agreed to a framework for negotiating an agreement on reciprocal trade to strengthen our bilateral economic relationship, which will provide both countries’ exporters unprecedented access to each other’s markets,” the statement said.The Indonesia deal is among only a handful reached so far by the Trump administration ahead of an August 1 deadline when higher tariffs are due to kick in.
The Philippine Embassy did not immediately respond to a message seeking comment, but Marcos’ government indicated ahead of the meeting that he was prepared to offer zero tariffs on some US goods to strike a deal with Trump.
The Filipino leader’s three-day visit shows the importance of the alliance between the treaty partners when China is increasingly assertive in the South China Sea, where Manila and Beijing have clashed over the hotly contested Scarborough Shoal.
Trump, in the post on Truth Social outlining his agreement, said the US would impose a 19% tariff rate for the Philippines, down from a 20% tariff he threatened to impose starting Aug 1. In return, he said, the Philippines would have an open market and the US would not pay tariffs.
Indonesia has agreed to eliminate tariffs on more than 99% of U.S. goods and scrap all non-tariff barriers facing American firms, while the U.S. will drop threatened tariffs on Indonesian products to 19% from 32%, the two countries said on Tuesday.
Trump hailed the deal, which he first announced on July 15, in a posting on his Truth Social media platform, calling it a “huge win for our Automakers, Tech Companies, Workers, Farmers, Ranchers, and Manufacturers.”
Details of a framework for the accord were released in a joint statement by both countries, and a fact sheet issued by the White House. They said negotiators for both countries would finalise the actual agreement in the coming weeks.
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(With Inputs From Reuters, AP)
