US aid freeze sparks fears Philippines will become ‘bargaining chip’ in Trump’s China talks

Philippine officials insist the pause in US$500 million in military aid is temporary, but analysts warn it signals a broader strategy shift

Reading Time:5 minutes

Philippine President Ferdinand Marcos Jnr, (left)) accompanied by a US soldier inspects a high mobility artillery rocket system on April 26, 2023. Photo: AFP

Published: 3:00pm, 29 Jan 2025

The Philippines is bracing for the possible loss of half a billion dollars in promised US military aid under President Donald Trump, as analysts warn Manila could become a “bargaining chip” in Washington’s dealings with Beijing.

The uncertainty follows a sudden 90-day freeze on all US foreign aid funded by or through the State Department and the US Agency for International Development (USAID), announced on Friday by Secretary of State Marco Rubio.

The announcement comes less than six months after former US Secretary of State Antony Blinken announced in late July that Washington would allocate “US$500 million in foreign military financing to the Philippines to boost security collaboration with our oldest treaty ally in this region”.

Department of Foreign Affairs Undersecretary Eduardo de Vega attempted to downplay the damage during a palace press briefing on Saturday, insisting there was still room to negotiate.

“We’re still talking to the Americans about that,” he said, adding that the freeze was still temporary.

He also argued a stoppage in help from Washington would not “severely affect us” because the Philippines still has the financial support of other allies.

De Vega also stressed that, despite the suspension, operations at the nine existing EDCA sites – military facilities jointly used by US forces in the country authorised by the 2014 Enhanced Defence Cooperation Agreement (EDCA) – will in “no way” be affected.