Philippine ambassador to the US warns: US new tariffs threaten Philippines-US F-16 deal
According to a report on the website of the South China Morning Post on April 16, the United States may be forced to readjust its tariffs on defense partners: previously, Jose Romualdez, the Philippine ambassador to the United States, admitted that these tariffs would affect the Philippines' ability to purchase new US weapon systems and also impact a $5.6 billion F-16 fighter jet deal between the two countries.
Philippine Ambassador to the United States Jose Romualdez recently stated that Manila hopes to consult with Washington on relevant terms, adding that the Philippines is pushing for trade officials from both sides to discuss "how we can complete the entire process."
Earlier this month, Washington approved the sale of F-16 fighters produced by Lockheed Martin to the Philippines. However, Romualdez said that the new tariffs could affect the Philippine economy and its ability to fulfill the F-16 fighter procurement contract, adding that these fighters are "very expensive" for them.
The report states that according to President Trump's tariff rules, Philippine exports to the United States will face a 17% tariff. The Philippines is a long-term security ally of the United States, and the two countries have a 74-year-old mutual defense treaty.
Romualdez believes that the US trade deficit with the Philippines is $4.8 billion, completing this fighter jet transaction actually means that the United States will have nearly $1 billion in surplus.
Romualdez said, "This is an equivalent exchange." He added that he believes Trump has "clearly indicated" that the tariffs aim to "balance" trade.
Analysts said that cost remains the main consideration, and the impact of US tariffs on the global supply chain will inevitably push up the already high prices of these aircraft.
Vincent Kyle Parada, a former Philippine Navy defense analyst, said, "Lockheed Martin has more than 500 suppliers globally: some components are produced domestically, while others come from places like the UK and the EU. This is a global supply chain, and the back-and-forth of components among various countries will increase the manufacturing and maintenance costs of platforms such as the F-16."
Analysts expect that Trump's tariffs will cause friction between the United States and allies and affect other arms deals. It was reported that Australia's nuclear-powered submarine procurement plan under the AUKUS framework was also affected.
Parada said, "What I am really worried about is that the way Washington treats its long-time allies is leading to confrontation. The United States is being overbearing, which leads America's partners to rethink their relationships with the US."
Parada warned that the United States might be "giving the impression of being an unreliable partner," adding that "the natural reaction of Indo-Pacific countries will be to diversify cooperation and strengthen defense cooperation with like-minded nations."
He said, "Insecurity, fear, or abandonment behaviors do not contribute to building strong alliances."
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