Washington: US President Donald Trump announced a new trade agreement with the Philippines following a meeting Tuesday with President Ferdinand Marcos at the White House. 'It was a beautiful visit, and we concluded our Trade Deal, whereby The Philippines is going OPEN MARKET with the United States, and ZERO Tariffs. The Philippines will pay a 19% Tariff,' Trump wrote on Truth Social.

According to Anadolu Agency, the US had announced a 20% tariff on Philippine exports, which was set to take effect on August 1. The agreement marks a significant shift in the trade dynamics between the two countries, aiming to bolster economic ties and market accessibility.

In addition to trade discussions, the two nations agreed to continue their military cooperation, as stated by Trump. The Philippines, a long-standing military ally of the US in the Asia-Pacific region, hosts American soldiers and provides access to its military bases. The two countries have maintained a mutual defense treaty since 1951.

Chinese Foreign Ministry spokesman Guo Jiakun urged, however, that the cooperation should not target or harm any third party, referencing tensions in the South China Sea. Chinese and Philippine vessels have witnessed several encounters in the disputed waters of the mineral-rich South China Sea, where the two countries have overlapping claims.