US State Dep’t announces P3-B aid to PH during Marcos’ Washington visit

MANILA, Philippines — The US Department of State announced a P3 billion ($60 million)  foreign assistance package to the Philippines following President Ferdinand R. Marcos Jr.’s meeting with U.S. Secretary of State Marco Rubio in Washington, D.C.

In a statement released Wednesday, the U.S. Embassy in the Philippines said the funding will support the Philippines’ energy, maritime, and economic growth programs.

“This is the U.S. government’s first announcement of new foreign assistance for any country since the Trump administration began its review and realignment of foreign assistance in January,” the embassy said.

On January 20, Trump ordered a freeze on all development assistance funding for foreign countries.

According to the U.S. Embassy, Rubio said the State Department will work with Congress to allocate an additional P825 million ($15 million) to boost private sector investment in the Luzon Economic Corridor (LEC).

“If approved, this funding will support investments in the areas of transport, logistics, energy, and semiconductors that will help create jobs and drive economic growth in the country,“ the embassy said.

The LEC is an infrastructure plan between the Philippines, U.S. and Japan, seeking to connect the Philippine capital to other major hubs in Luzon, including Subic Bay, Clark and Batangas.

Tariff deal

>Aside from the foreign aid pledge, Marcos’ negotiations with Trump in Washington yielded a trade deal that imposes a 19 percent tariff on Philippine exports in exchange for zero tariffs on U.S. goods.

The 19 percent tariff on Philippine exports is the second lowest in Southeast Asia, next to Singapore’s 10%.

Prior to the meeting, Trump threatened a 20 percent tariff on goods from the Philippines.

While Marcos said it might seem a “very small concession,” he called the 1-point reduction in tariffs a “significant achievement.”

Progressive groups, meanwhile, said the deal is disadvantageous to the Philippines and shows the country’s “unequal master and puppet relations” with the U.S. –Lau Bacia, INQUIRER.net trainee /gsg

(2025/07/23-17:31)

To read a full story, please click here to find out how to subscribe.