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Philippines warns US$5.6 billion US fighter jet deal at risk from Trump’s tariffs
The proposed tariffs’ impact on global supply chains is likely to raise the already hefty price tag on the jets, analysts say
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The United States might be forced to recalibrate its tariffs on defence partners, after Manila’s top envoy to Washington admitted that the levies would affect its ability to buy new American weapon systems and fulfil a US$5.6 billion deal for F-16 fighter jets.
Philippine ambassador to the US, Jose Manuel Romualdez, said on Friday that Manila was keen to negotiate terms with Washington, adding that his country was pushing for trade officials from both sides to discuss “how we can go through this whole process”.
Earlier this month, Washington approved the sale of F-16 jets manufactured by Lockheed Martin. But the new tariffs might affect the Philippine economy and its ability to complete the estimated US$5.6 billion purchase, Romualdez said, adding that the fighters “are very expensive for us”.
The Philippines, a long-time security ally of the US through a 74-year-old mutual defence treaty, faces a 17 per cent levy on its exports to America under President Donald Trump’s proposed “Liberation Day” tariffs.
Romualdez argued that because the US trade deficit with the Philippines was US$4.8 billion, the fighter jet deal meant there was actually a “US$1 billion surplus in favour of the United States”.
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