“It may be dangerous to be America’s enemy, but to be America’s friend is fatal.” Henry Kissinger
President Ferdinand Marcos Jr. has concluded his visit to the United States. Marketed as a reaffirmation of “ironclad friendship” between Manila and Washington, the trip was hyped by Malacañang as a breakthrough moment for Philippine economic and security interests. But with the announcement of the concessions made under the “trade deal”, the visit appears to have yielded little value for the Filipino people—and much for the United States.
| SUPPORT INDEPENDENT SOCIAL COMMENTARY! Subscribe to our Substack community GRP Insider to receive by email our in-depth free weekly newsletter. Subscribe to our Substack newsletter, GRP Insider! Learn more |
President Marcos accepted the terms of a new U.S.-Philippines trade deal that imposes a 19% tariff on Philippine exports, while allowing American goods to enter the country tariff-free.
The 1% discount from the initially proposed 20% is a far cry from the Philippines’ original position of a 10% rate. In exchange, the U.S. offered warm words, military photo ops, and rhetorical affirmations of friendship.
What it did not offer was a fair deal.
The Leverage That Wasn’t Used
The Philippines entered these negotiations with more leverage than it realized. Under the Enhanced Defense Cooperation Agreement (EDCA), the U.S. now enjoys access to nine key military sites across the country—including bases in Palawan, Cagayan, and Isabela—giving Washington strategic positioning along the so-called ‘first island chain’ encircling China.
In military terms, this makes the Philippines one of the most crucial staging grounds for U.S. operations in the Indo-Pacific. But instead of translating that value into stronger negotiating power for trade, investment, or technological cooperation, the Marcos administration settled for symbolic gestures and lopsided economic terms.
This failure to leverage EDCA and the Philippines’ geographic centrality has resulted in an arrangement where the country is increasingly seen not as an equal ally, but as a forward-operating warship for U.S. military interests—a pawn in a great-power contest whose economic interests are being sidelined in favor of Washington.
The Philippines is again made an American colony
In one visit, Washington secured continued basing access, advanced plans for a shipyard in Palawan, a future arms manufacturing facility on Philippine soil, and open access to the Filipino market for U.S. exports.
Meanwhile, Manila walked away with a 19% tariff burden on its key export sectors and a public relations line about ‘ironclad friendship’ that harms Filipino farmers, workers, industries, or national development.
The electronics and semiconductor sectors—among the most critical for Philippine exports—are projected to generate over $30 billion this year. A 19% tariff will significantly erode competitiveness and discourage further investments, especially as neighboring ASEAN countries secure preferential or exempted status from similar tariffs.
ASEAN Neighbors Stand Up vs America While Marcos Begs for 1%
While Marcos basked in American red carpet make-believe, his ASEAN neighbors were securing real gains:
Indonesia
Cut tariffs from 32% to 19% via a simple phone call. Official U.S. visit scheduled for September.
Malaysia
Finalized a green tech trade pact, drawing U.S. investments across Malaysia.
Vietnam
Signed a semiconductor supply agreement and received preferred status for chip exports.
Thailand
Renewed U.S.-Thai Free Trade Dialogue, gained agricultural exemptions and AI research grants, and hosted the U.S.-ASEAN Digital Cooperation Summit.
By contrast, Marcos—the first ASEAN leader to visit Washington under Trump’s second term—returned home with less favorable terms, despite offering more strategic concessions, with some experts decrying as selling out the Philippines’ sovereignty. This glaring asymmetry raises questions about the quality of Philippine diplomacy and whether its national interest is truly being advanced.
Ambassador Romualdez: More Lobbyist than Diplomat?
Key to this outcome is the enduring presence of Ambassador Jose Manuel “Babe” Romualdez, who has been central to shaping U.S.-Philippine relations. Romualdez has consistently prioritized U.S. security and economic preferences—championing EDCA expansion, echoing American talking points, and now defending a trade deal that clearly disadvantages the Philippines.
Rather than acting as a negotiator for Philippine advantage, Romualdez has functioned as a broker for U.S. access and influence. His role in these negotiations underscores the urgent need to re-examine who is truly representing Philippine interests abroad.
Target in the First Island Chain
With this visit, the Philippines’ status as the first island chain of U.S. defense against China is no longer speculative—it is being operationalized.
With military infrastructure in place, a trade agreement that favors Washington, and a subservient diplomatic posture, the Philippines is drifting from an ally to a proxy.
This trajectory will have long-term consequences. Not only does it reduce Manila’s economic flexibility and negotiating leverage, it also places the country directly in the crosshairs of any potential great-power conflict in the region.
And for what?
A 19% tariff and another promise of partnership.
First to Fly, Last to Deliver
President Marcos may have been the first ASEAN leader to fly to Washington this year, but he is returning home with the least to show for it. The Philippines gave up strategic concessions and accepted economic penalties—while others in the region delivered results quietly, strategically, and effectively.
The Filipino people deserve more than diplomatic rhetorics. They deserve a foreign policy grounded in dignity, reciprocity, and the clear advancement of national interest. Anything less is not leadership—it is surrender.
