MANILA—The Philippine government has yet to finalize a tariff agreement with the United States, Malacañang said Thursday, clarifying that technical working groups from both countries are still in talks to secure terms favorable to Philippine interests.

Special Assistant to the President for Investment and Economic Affairs Secretary Frederick Go confirmed the ongoing discussions in a Palace briefing following President Ferdinand Marcos Jr.’s recent trip to Washington D.C., where the U.S. announced a 1% reduction in tariffs on Philippine exports—from 20% to 19%.

“This is not yet a final trade deal,” Go said. “Our technical working groups will continue to work with their counterparts from America to finalize the details.”

Go said the 19% tariff rate was unilaterally imposed by the U.S. government and applies to multiple countries, not just the Philippines. “Hindi naman kasi talaga po ito deal. Unilaterally in-impose lang po ito ng Amerika sa atin at sa buong mundo,” he explained.

Despite the absence of a finalized agreement, Go noted that the Philippines now enjoys the second-lowest U.S. tariff rate among Southeast Asian countries, next only to Singapore at 10%. He said this could make the Philippines more attractive to foreign investors looking for export hubs.

The economic official emphasized that unlike Vietnam and Indonesia—which agreed to full market access and additional purchases such as Boeing aircraft in exchange for tariff cuts—the Philippines offered limited concessions. “We did not give full access,” Go said.

Go clarified that key agricultural sectors—including rice, sugar, corn, pork, chicken, and fisheries—remain protected and were not included in the proposed tariff reductions. “Hindi po natin tinanggal ang taripa ng mga iyan,” he said.

Instead, the Philippines opened select sectors where there is minimal domestic production, such as pharmaceuticals, wheat, soy, and automobiles. Go said this move aims to reduce costs for Filipino consumers. “Kapag tariff-free po ang gamot, makakababa po iyan ng presyo ng gamot,” he said.

He also emphasized that lowering tariffs on wheat and soy may result in cheaper livestock feed and bread, offering indirect relief to farmers and households.

“The sectors na in-open natin, wala tayong masasaktan na industriya dito,” Go said, adding that the Department of Trade and Industry carefully assessed which industries to shield during negotiations.

Asked whether the 1% tariff cut was worth the concessions, Go pointed out that the U.S. tariff is paid by American importers and does not directly impact Philippine exporters. “Kapag mababa ang ating taripa, makaka-attract po tayo ng mga foreign direct investors,” he said.