Trump says U.S., Philippines 'very close' to finalizing trade deal

U.S. President Donald Trump hosted Philippine President Ferdinand Marcos Jr. at the White House on Tuesday, announcing that the two countries were nearing completion of a significant trade agreement.

“We’re going to discuss trade today, and we’re very close to finalising a major deal,” Trump told reporters as the meeting began.

Marcos is the first Southeast Asian leader to visit Trump during his second term. The U.S. president has already secured trade agreements with Vietnam and Indonesia- key regional allies but has adopted a firm stance even with long-standing partners, amid intensifying strategic competition with China.

Last year, the United States recorded a nearly $5 billion trade deficit with the Philippines out of $23.5 billion in bilateral goods trade. Earlier this month, Trump increased proposed tariffs on Philippine imports from 17% to 20%, describing them as “reciprocal” measures.

Trump noted the scale of trade between the two countries, expressing surprise at what he described as “very big numbers” that he believes will increase further once a trade deal is signed.

Gregory Poling, a Southeast Asia analyst at the Center for Strategic and International Studies in Washington, suggested that Marcos may secure more favourable terms than those agreed by Vietnam (20% baseline tariff) and Indonesia (19%).

Trump also highlighted the strength of the U.S.-Philippine defence partnership, saying, “They’re a militarily important nation, and we’ve conducted some excellent joint exercises recently.”

Marcos, who arrived in Washington on Sunday, held talks at the Pentagon with U.S. Defense Secretary Pete Hegseth on Monday and later met Secretary of State Marco Rubio. He is also scheduled to meet with American business leaders interested in investing in the Philippines.

According to Philippine officials, Marcos intends to emphasise that economic resilience is essential for the country to play a meaningful role as a U.S. partner in the Indo-Pacific region.

Assistant Foreign Secretary Raquel Solano stated last week that Philippine trade negotiators have been working closely with U.S. counterparts to reach a “mutually acceptable and beneficial” agreement.

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