The Philippines has warned that its US$5.6 billion deal to acquire F-16 fighter jets from the United States could be jeopardized by a new round of tariffs proposed by US President Donald Trump.
This has raised concerns not just about the future of the arms deal but also about the broader implications of US trade policy on defense partnerships in the Indo-Pacific.
Philippine Ambassador to the US, Jose Manuel Romualdez, emphasized that his country is urging trade officials from both sides to discuss “how we can go through this whole process.”
He noted that while the US recorded a US$4.8 billion trade deficit with the Philippines, the proposed fighter jet agreement would effectively create a US$1 billion surplus for the US.
“It’s a quid pro quo,” Romualdez said, adding that he believed Trump had “made it clear” that the tariffs were intended to “balance” trade.
Earlier this month, the US approved the sale of F-16 Block 70/72 aircraft to the Philippines.
This deal is a cornerstone of Manila’s efforts to modernize its air force amidst growing tensions in the South China Sea, where China has steadily expanded its military presence.
Impact Of Tariffs On The F-16 Supply Chain
Analysts warn that tariffs could indirectly raise the cost of the fighter jets, given the complex global supply chains involved in their production.
Lockheed Martin sources parts from over 500 suppliers worldwide, including from countries that may also be affected by US tariffs. This could lead to higher transportation, raw material, and manufacturing costs, which could ultimately be passed on to buyers, such as the Philippines.
Vincent Kyle Parada, a former defense analyst for the Philippine Navy, explained that “the back and forth between countries throughout that supply chain is going to raise manufacturing and maintenance costs for platforms like the F-16.”
Implications For US-Philippines Defense Ties
The potential collapse of the F-16 deal could complicate Washington’s broader strategy in the Indo-Pacific. The Philippines is a treaty ally of the United States under the 1951 Mutual Defense Treaty and plays a pivotal role in regional security, particularly in maritime disputes in the South China Sea.
Joint military exercises, like the annual Balikatan drills, highlight the growing defense cooperation between the two countries. Last year, the US deployed its Typhon missile system to the Philippines for testing, and both nations signed a landmark agreement to expand US access to Philippine military bases.
Sherwin Ona, an international fellow at the Institute for National Defense and Security Research in Taiwan, noted that the US has signaled a “sense of urgency” in supporting the Philippines’ defense posture. This urgency may push Washington to reconsider its trade policies with key allies.
The impact of Trump’s tariffs is being closely monitored by other US allies. Australia, part of the AUKUS security pact with the US and the UK, is also facing scrutiny regarding its purchase of Virginia-class nuclear-powered submarines from the US.
Analysts warn that supply chain disruptions and tariffs could significantly increase costs. Although AUKUS encompasses a broader security arrangement, concerns about price escalation and delivery delays may erode partner confidence.
For Washington, the risks go beyond losing defense contracts—it could risk fostering a perception of unpredictability and economic nationalism, even among strategic allies.
Manila’s Options And Regional Realignments
If the F-16 deal collapses, the Philippines may seek alternatives. This could involve second-hand fighter jets from European countries, such as Sweden. However, such a shift would likely result in procurement delays, retraining of pilots, new maintenance protocols, and potential interoperability issues with US forces.
The F-16 has long been a key component of US air power, used by many allied nations. Acquiring the F-16 would have improved interoperability between the Philippine Air Force and the US military, which is crucial for joint operations and intelligence sharing.
China’s growing military presence and increasingly aggressive tactics in the South China Sea have spurred regional states to enhance their defense capabilities.
The Philippines, Vietnam, and Malaysia have all filed multiple protests against what they view as illegal Chinese incursions into their exclusive economic zones. Chinese vessels have been involved in several maritime harassment incidents against Philippine ships, including those conducting resupply missions.
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In response, the Philippines has bolstered its positions in the Spratly Islands and increased maritime patrols. The government is also investing in coastal defense and surveillance systems and has sought enhanced cooperation with regional and Western partners. Washington has supported Manila’s maritime claims, criticizing what it calls unlawful Chinese actions.
Under President Ferdinand Marcos Jr., the Philippines has adopted a more assertive stance toward China and deepened its defense ties with the United States. The US has been granted broader access to Philippine military bases, and both nations have committed to closer intelligence and technology cooperation to support American arms sales to Manila.
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The Philippines is moving forward with its military modernization program, allocating US$35 billion this year under its Horizon 3 program. The country aims to strengthen its alliances and counter China’s growing presence, particularly in the contested areas of the South China Sea.
The region’s importance may compel the US to reconsider the true costs of its trade policies. While adding tariffs is a key component of Trump’s economic platform, critics argue that strategic relationships should be prioritized alongside economic concerns.
- Via: ET News Desk
- Mail us at: editor (at) eurasiantimes.com
