The Philippines is no longer in an advantageous position in the race to take full advantage of the reciprocal tariffs imposed by the United States (US), with Indonesia’s recent deal to cut its tariff poised to maintain the status quo in agricultural exports.

US President Donald Trump announced on Wednesday, July 16, that he has agreed to a deal with Indonesia to reduce the tariffs on the Southeast Asian country from 32 percent to 19 percent.

This happened one week after Trump raised the tariffs against Philippine goods from 17 percent to 20 percent.

Among the top exports of both the Philippines and Indonesia to the US are agricultural products and semiconductors.

Department of Agriculture (DA) Assistant Secretary Arnel de Mesa said the two countries are relatively equal when it comes to exports of coconut products.

Coconut products are the country’s top agricultural exports to the US, which include coconut oil, desiccated coconut, and other by-products.

Coconut oil, in particular, was the country’s fourth-most valuable export commodity last year, reaching $2.2 billion.

With Indonesia’s tariff rate now at 19 percent, De Mesa said this will essentially retain the status quo in coconut trade.

The Philippines, once the world’s biggest coconut exporter, has since lost this title to Indonesia.

The current tariff situation of the two countries is a far cry from the initial announcement of these taxes in April.

When Trump first announced his so-called reciprocal tariffs, the Philippines faced among the lowest rates in Southeast Asia—at 17 percent, while Indonesia was slapped with a steep 32 percent.

Agriculture Secretary Francisco Tiu Laurel said in April that the country should push for more exports to the US given the lower tariff, with coconut exports seen to be more competitive.

De Mesa, also the DA’s spokesperson, said he is optimistic that the government can reach a more beneficial tariff rate with its upcoming negotiation.

“So, it’s not over yet, actually. There [are] still negotiations,” he said in a press briefing.

A delegation of the country’s economic team is expected to meet with US trade officials to hold negotiations on the tariffs.

President Ferdinand Marcos Jr. is also scheduled to meet with Trump on July 20 to 22, with the tariffs likely the centerpiece of the meeting.

“We trust the wisdom of our economic managers at ng ating Pangulo sa pag-discuss ng taripa para sa ikabubuti ng ating mga magniniyog at sa iba pa nating magsasaka at mangingisda (and our President in discussing the tariff for the benefit of our coconut farmers, as well as our other farmers and fisherfolk),” said De Mesa.

Last week, farmers group Samahang Industriya ng Agrikultura (SINAG) urged the government to ensure that negotiations are fair for the country’s agriculture sector.

“We reject any response that leads to a race to the bottom—slashing tariffs on key agricultural commodities, weakening labor protections, or compromising environmental standards,” the group said in a statement.

“History has shown that trade agreements driven by market access alone undermines domestic industries, destroys our capacity to produce our own food, displace jobs, and weaken rural economies,” it added.

Under Indonesia’s tariff deal with the US, Trump said the Southeast Asian country has committed to purchase $15 billion in energy, $4.5 billion in agricultural products, and 50 Boeing aircraft.

The US’ recent announcement of revised tariffs against majority of its trading partners, including the Philippines, will take effect starting Aug. 1.