Impact of Zero Tariffs on U.S. Soy and Wheat Imports in the Philippines

On July 25, 2025, the Philippine Chamber of Agriculture and Food (PCAFI) announced that the recent agreement for zero tariffs on U.S. imported soy and wheat would not significantly harm local agricultural industries. This statement followed the Philippines' concession during negotiations with U.S. officials, including President Ferdinand Marcos Jr., who visited Washington earlier that month. Despite PCAFI's positive assessment, concerns remain about the potential negative impact on domestic farmers who may face competition from these imports.

The PCAFI emphasized that the Philippines maintains the second-lowest tariff rate among Southeast Asian nations, which could provide a competitive edge against neighboring countries producing similar agricultural goods. According to PCAFI, this tariff advantage might result in lower costs for animal feeds, although they expressed hope for further reductions in U.S. tariffs to benefit local exporters. "The silver lining of the recent developments is the fact that the Philippines has the second-lowest tariff rate among Southeast Asian countries," PCAFI stated in their official release.

However, Raul Montemayor, National Manager of the Federation of Free Farmers, cautioned that while the country does not produce soy and wheat, Filipino farmers could still suffer as these goods may substitute for local agricultural products. Montemayor has called for transparency regarding the negotiations, particularly concerning potential commitments that could affect import regulations.

Frederick Go, Special Assistant to the President for Investment and Economic Affairs, clarified during a briefing that key products such as rice, sugar, corn, chicken, and pork were excluded from the concessions made to the U.S. "Lahat ng mga produkto na 'yan hindi natin tinanggal ang taripa," Go affirmed, emphasizing that tariffs on these staples remain intact.

The new agreement also slightly reduced the previous tariff on Philippine exports to the U.S. from 20% to 19%, a compromise that still falls short of the 17% rate previously proposed by the Trump administration. This reduction, while welcomed, illustrates the ongoing complexities of the U.S.-Philippine trade relationship, especially for agricultural sectors.

In 2024, agricultural exports from the Philippines accounted for 10.6% of the nation’s total exports, generating approximately $7.75 billion in revenue. As the country navigates these trade agreements, the implications for local farmers, food security, and overall economic health are significant. The PCAFI and other agricultural groups continue advocating for policies that prioritize local producers over international trade pressures, emphasizing that trade policies should not be dictated by the short-term gains of a few privileged importers.

In summary, while the zero tariffs on U.S. soy and wheat imports may not pose an immediate threat to local industries, the potential for long-term impacts on Filipino farmers remains a critical concern. Stakeholders call for ongoing dialogue and transparency in trade negotiations to ensure that the agricultural sector can thrive amidst changing global dynamics.