How Cambodia negotiated a new trade deal with the US
Cambodia successfully negotiated a new trade deal with the US, securing lower tariffs and improved market access for its products.
The influential US media outlet, The New York Times, reported on Wednesday, July 30, citing US Secretary of Commerce Howard Lutnick, that a new tariff agreement has been reached with Thailand and Cambodia. The deal follows President Trump’s threat to end negotiations with both countries if they failed to cease military conflicts.
Lutnick did not provide specific details regarding the new tariff rates in his interview with Fox News, only stating, "You know what we did today? We made a trade deal with Cambodia and Thailand."
Thailand and Cambodia were facing the prospect of retaliatory tariffs as high as 36% on exports to the US, one of their largest markets. Both countries rushed to negotiate a deal before the August 1 deadline, particularly after neighbouring nations like the Philippines and Indonesia faced tariffs of 19%, and Vietnam 20%.
An anonymous senior Cambodian official involved in the talks revealed that Cambodia would welcome a tariff rate lower than its regional competitors. The official also mentioned that Prime Minister Hun Manet had urged Trump to "set an appropriate tariff rate to help Cambodia recover its economy, as the country has been in a state of war for decades and only achieved peace in 1998." The official said that Trump "understood and acknowledged this."
Cambodia has also proposed measures as part of the deal, including improved access to the Cambodian market for US products and the purchase of Boeing aircraft.
On the Thai side, Finance Minister Pichai Chunhavajira reiterated that the negotiators had presented terms that were acceptable to Thailand’s government, aiming to protect the country’s best interests.
