President Donald Trump has announced two new trade agreements one with the Philippines and another with Indonesia both designed to reshape U.S. economic relationships ahead of an August 1 deadline tied to his “Liberation Day” tariff program.
Trump said the deal with the Philippines, concluded during a White House meeting with President Ferdinand Marcos Jr. on July 22, establishes zero tariffs on U.S. exports to Manila while setting a 19 percent tariff on Filipino goods entering the United States. He described it as the Philippines going “open market with the United States” and confirmed ongoing collaboration on military issues.
The agreement with Indonesia, formalized in separate talks, imposes a 19 percent U.S. tariff on Indonesian exports down from the previously threatened 32 percent while eliminating tariffs and non-tariff barriers on American goods entering Indonesia.
Trump emphasized that American farmers, ranchers, fishermen and manufacturers will receive “complete and total access” to the Indonesian market, home to more than 280 million people.
As part of the Indonesia deal, Jakarta has agreed to purchase at least $15 billion in U.S. energy products, $4.5 billion in American agricultural goods such as soybeans and wheat and 50 Boeing aircraft predominantly Boeing 777 jets.
It also pledged to eliminate non-tariff barriers, recognize U.S. product standards for vehicles and pharmaceuticals, and enforce new rules to prevent third-party transshipment from bypassing American tariffs.
Trump characterized the agreements as a “huge win” for American industries and framed them as a template for future deals with countries facing comparable tariff threats.
Analysts note these agreements mark a divergence from traditional trade negotiations, relying instead on unilateral U.S. tariff threats as leverage. Critics question whether such deals hold long-term value absent formal treaty structures and comprehensive texts.
The new pacts come amid a wave of similar agreements with other countries including Japan, Britain, and Vietnam, as well as a pause on tariffs against China. Treasury Secretary Scott Bessent has indicated that additional deals are forthcoming, with tariffs ranging from 19 percent to as high as 50 percent if no agreements are reached.
Critics caution that while American exporters may benefit from expanded market access, U.S. importers and consumers could face higher costs on goods from the Philippines and Indonesia due to the imposed 19 percent tariffs. The broader economic impact remains to be seen but Trump’s strategy has already influenced the U.S. stock market; the S&P 500 reached a new record on the announcement of these deals.
Written By Ian Maleve
