US envoy calls for stronger economic ties with PH
The United States aims to strengthen its economic partnership with the Philippines to match their long-standing defense alliance.
In a statement on Monday, US Ambassador to the Philippines Lee Lipton said Washington supported the Philippines’ economic development and believed that stronger economic cooperation should complement the two countries’ security partnership.
“We also believe our security partnership must be matched by an equally strong economic partnership,” Lipton said.
“The United States supports the Philippines’ economic development and believes reciprocal, mutually beneficial trade is essential to shared prosperity,” he added.
Lipton did not identify specific trade initiatives or new economic commitments, but underscored the importance of deepening ties between the two countries as they mark the 75th commemoration this year of their mutual defense treaty, which was signed on Aug. 30, 1951.
His statement came following US Secretary of War Pete Hegseth’s visit to Cebu for the Association of Southeast Asian Nations Defense Ministers’ Meeting-Plus last week.
Lipton described the visit as a demonstration of the Trump administration’s commitment to strengthening alliances and regional cooperation, particularly in Southeast Asia.
“Our commitment to Philippine security is ironclad,” he said.
“The United States is proud to call the Philippines an ally, partner and friend. Our relationship is not simply a matter of treaties or shared strategic interests; it is a bond between our peoples that grows stronger every day,” Lipton added.
Security commitments
The US diplomat said Manila and Washington have built a strong partnership under President Marcos, supported by hundreds of joint military exercises and training activities, hundreds of millions of dollars in US security assistance, expanded maritime cooperative activities, and cooperation in disaster response and public health.
However, Lipton stressed that the relationship should extend beyond defense and strategic interests to include stronger economic engagement.
He also reiterated Washington’s support for Philippine sovereignty, territorial integrity and freedom of navigation in the Indo-Pacific.
The Philippines is seeking to attract more American investments into semiconductors, electronics and critical minerals as the Marcos administration pushes to move the country toward higher-value manufacturing and strengthen its role in global supply chains.
A key part of the government’s pitch is the Luzon Economic Corridor, which will connect Subic, Clark, Manila and Batangas. It is envisioned as a hub for logistics, manufacturing, connectivity and innovation and is expected by the government to generate up to 1 million jobs.
Trading partner
Last month, the Department of Trade and Industry said it still hopes to soon secure a lower US tariff rate for Philippine exports after a recent report from Washington acknowledged the government’s efforts to prevent forced labor.
Currently, more than a third of Philippine exports to the United States face a 12.5-percent tariff following a Section 301 investigation by the Office of the United States Trade Representative (USTR), which found shortcomings in the country’s restrictions on imports of goods produced through forced labor.
That rate is higher than the 10-percent tariff imposed on trading partners that the USTR determined had adopted certain measures against forced labor imports.
The United States is the largest export destination for the Philippines, and one of the country’s top overall trading partners.
Bilateral trade reached $26.9 billion in 2025. Philippine exports to the US totaled $17.8 billion in 2025, up 25.4 percent from $14.3 billion in 2024.
Washington is also Manila’s major source of Foreign Direct Investments (FDI) and Official Development Assistance (ODA).
In 2025, net FDI from the US reached $183.99 million. In 2023, it was the Philippines’ top source of ODA grants, amounting to $615.97 million.
