Cambodia and US Advance Trade Talks Amid Tariff Tensions

[geovalin]

CDC

 

Cambodia and the United States have moved a step closer to a new trade agreement, following three days of talks in Washington that both sides described as “frank and constructive”.

 

A draft deal is now on the table, with a second round of negotiations scheduled for early June in the US capital, according to a press release from the Cambodian government on Thursday.

 

The talks were led by Sun Chanthol, Cambodia’s Deputy Prime Minister and First Vice-Chairman of the Council for the Development of Cambodia, and Sarah Ellerman, the US Assistant Trade Representative for Southeast Asia and the Pacific.

 

Cambodia, under Prime Minister Hun Manet’s leadership, reaffirmed its commitment to building a balanced economic partnership with Washington. Officials also held discussions with US Senator Tammy Duckworth, signalling a broader diplomatic push to improve bilateral relations.

 

The negotiations come at a tense moment. In April, the US imposed tariffs on Cambodian exports, citing trade imbalances and regulatory concerns — a blow to Cambodia’s vital manufacturing sector. Though the tariff was later eased to 10 percent for a 90-day period, pressure remains high for a long-term resolution.

 

Hong Vanak, an economist at Cambodia’s Royal Academy, described the draft agreement as a “tangible outcome”, but warned that the final deal is likely to come with political strings attached. “The US appears to be using tariffs to influence smaller nations like Cambodia to align with its geopolitical interests,” he said.

 

He also noted that the delay until next month may reflect further demands from the Trump Administration, requiring careful consideration from Phnom Penh.

 

As both countries prepare for the next round of negotiations, the stakes are high. Cambodia is keen to secure fairer trade terms, while the US appears set on leveraging its economic weight in pursuit of broader strategic goals.

 

-2025-05-16