Cambodia Hails US Tariff Cut, Eyes Further Reduction

[geovalin]

Khmer Times

 

Cambodia has welcomed a significant cut in US tariffs on its exports and is pushing for more, with Deputy Prime Minister Sun Chanthol praising President Donald Trump’s decision to lower the rate from 49% to 36%.

 

Speaking at a press conference in Phnom Penh on 8 July, Chanthol described the move as a “major achievement” and urged local manufacturers to “keep calm” as negotiations continue. The new tariff rate is due to take effect from 1 August, unless further talks yield a new agreement.

 

“There is a chance that the tariffs will go down more,” said Chanthol, who also serves as First Vice-President of the Council for the Development of Cambodia. “I would like to thank President Donald Trump for decreasing the rate for Cambodia, from 49 to 36.”

 

The revised rate reflects a 13 percentage point drop, or a 26.27% reduction in relative terms—one of the most favourable outcomes among regional economies. By contrast, Malaysia saw its tariff rise slightly from 24% to 25%.

 

Chanthol credited Cambodia’s “fair and transparent” negotiating strategy and highlighted the leadership of Prime Minister Hun Manet in guiding the talks. He confirmed that the government remains ready to engage with US counterparts—either in person or online—before the new rate is enforced.

 

The tariff reduction follows months of quiet diplomacy after the Trump administration introduced a sweeping review of trade arrangements in April, citing imbalances in trade flows and concerns over manufacturing subsidies.

 

A letter from President Trump to Prime Minister Hun Manet, disclosed by Chanthol, indicates Washington’s openness to further discussions. Cambodian officials are hopeful that ongoing dialogue could lead to an even lower tariff or broader trade concessions.

 

The announcement has offered some relief to Cambodian exporters, many of whom had feared the impact of the original 49% levy on their competitiveness in the US market. The Deputy Premier’s message to factories to “keep calm” reflects the government’s confidence in securing a better deal.

 

For now, Cambodia appears to have carved out a rare diplomatic win amid a turbulent global trade environment—though much depends on the next round of negotiations.

 

-2025-07-09