By John Q. Hosedrinker 
Following a meeting at the White House, President Donald Trump announced a new trade agreement with Philippine President Ferdinand Marcos Jr., lowering U.S. tariffs while allowing the Philippines to have an open market without U.S. tariffs. The framework of the deal aims to strengthen economic and security ties amidst shifting geopolitical dynamics in the Indo-Pacific region. The leaders also discussed military cooperation, with the U.S. reaffirming its commitment to the Philippines. This meeting signifies the importance of the alliance in the face of increasing tensions in the South China Sea.
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Trump says Philippines will pay 19% tariff while US pays no tariffs under deal with leader Marcos, a statement that requires immediate unpacking. It’s easy to get lost in the word games, but let’s clarify what’s actually happening here. The core of the issue is the manipulation of language, specifically, the use of the word “tariff”. It’s crucial to understand that in this context, “tariff” is essentially an “import tax.” And who ultimately pays this tax? The American consumer, and in this case, American importers.
The mechanics are pretty straightforward, even if the messaging isn’t. When goods from the Philippines enter the United States, they are subject to a 19% import tax. This tax is collected by Customs and Border Protection (CBP) as the goods cross the border. The American importer, the one bringing the product into the country, is responsible for paying this tax. Then, these costs are passed on to the consumer. The customer, in the US, who buys these goods will bear the final cost. The Philippines, in this scenario, doesn’t directly pay anything. They are shielded from paying any tax on the goods.
It seems Trump’s intention is to create a perception of a win, a masterful deal where America gets a favorable arrangement. The reality, however, is that American consumers will be paying more for products from the Philippines. It’s a tax on consumption, plain and simple. It’s a way to effectively increase the cost of goods for Americans, and in return, the US gets absolutely nothing. So, it’s important to note that the narrative of the Philippines “paying” tariffs is a misdirection. It is a distortion of reality. The burden falls on the American people.
This move effectively says that “Americans will pay a 19% tax on Philippine goods while Filipinos will pay no additional taxes on US goods”. Therefore the United States will pay a 19% tax on all goods. So, the US will pay a 19% import tax, while the Philippines will pay no import taxes. This is a pretty bad deal.
The fact that these details are often glossed over, or even deliberately obscured, reveals a deeper issue. The misleading language, the deceptive framing – it’s all designed to make the deal sound more favorable than it actually is. It’s important to remain critical and understand the underlying reality.
Essentially, the Philippines won’t be the ones paying the “tariff” in the deal with Trump. The tax burden falls on American importers and, by extension, the American consumer. It’s a consumption tax, making goods from the Philippines more expensive for Americans.
This entire situation highlights how easily complex economic concepts can be twisted. The use of loaded language and the focus on “deals” and “wins” creates an environment ripe for manipulation. The real consequence is that Americans will pay more for some goods, and the people of the Philippines will see no such increase in cost.
It’s important to remember that the “tariff” is an import tax, and that the one importing the goods has to pay the tax. It’s a deceptive way of increasing costs on American consumers. It’s a hidden tax, presented as a win. A win that will cost us.
Also, it is quite clear that in this deal, the Americans lose, the consumers pay, and the President can claim a win.
In summary, it seems like America is paying all the taxes.