Overview

• After meeting with Defense Secretary Pete Hegseth and Secretary of State Marco Rubio on July 21, President Marcos reaffirmed the seven-decade-old Mutual Defense Treaty.
• Washington has raised threatened reciprocal tariffs on Philippine imports to 20%, scheduled to take effect on August 1 without a new agreement.
• Manila is pushing to secure a mutually acceptable trade agreement that offsets severe tariff impacts on its economy.
• The Enhanced Defense Cooperation Agreement, expanded in 2023, and the recent Balikatan 2025 exercises have increased U.S. access to Philippine bases and joint training.
• Trade deals with Vietnam (20% tariff) and Indonesia (19%) establish precedents that Marcos hopes to improve upon in his negotiations.