Duterte cancelled the deal on the purchase of police rifles from the US amid tensions with Washington over US' accusations of human rights violations in the Philippines.
"We will not insist on buying expensive arms from the United States. We can always get them somewhere else. I am ordering the police to cancel it. We don't need them," Duterte said in a televised speech as quoted by Reuters.
Duterte added that the Philippines will look for another supplier of rifles that would be cheaper and as "maybe as durable and as good as those made in the place we are ordering them."
The incident is the latest in a series of events that have increased tensions between Washington and Manila.
Duterte reacted angrily to US' criticism of his hardline anti-drugs policy, telling US President Barack Obama to "go to hell" and threatening to break ties between the longstanding allies.