Cambodia, US strengthen trade ties with reciprocal tariff deal

Cambodia, US strengthen trade ties with reciprocal tariff deal

Phnom Penh and Washington discuss practical measures to advance cooperation under the Agreement on Reciprocal Trade. The focus remains on facilitating smoother market access, encouraging investment, and ensuring mutual benefits for businesses and consumers in both countries.

The Royal Government of Cambodia has reaffirmed its commitment to deepening trade and investment relations with the United States following high-level meetings in Washington DC from October 6 to 9.

The Cambodian delegation, led by Sun Chanthol, Deputy Prime Minister and First Vice Chairman of the Council for the Development of Cambodia (CDC), and Cham Nimul, Minister of Commerce, met with Ambassador Jamieson Greer, United States Trade Representative (USTR). Both sides welcomed the significant progress made on negotiations for the Agreement on Reciprocal Trade, which aims to further strengthen bilateral trade ties.

The meetings followed Cambodia’s successful reduction of reciprocal tariff rates earlier this year. On July 31, Cambodia secured a 19 percent reciprocal tariff rate, down from the original 49 percent. This achievement followed seven rounds of virtual conferences and three rounds of in-person negotiations between the Cambodian and US counterparts.

According to the Royal Government Spokesperson Unit, the two sides discussed practical steps to advance cooperation under the Agreement on Reciprocal Trade. The focus remains on facilitating smoother market access, encouraging investment, and ensuring mutual benefits for businesses and consumers in both countries.

The Royal Government of Cambodia, under the leadership of Hun Manet, Prime Minister, pledged to continue working closely with the United States to enhance economic cooperation and build a robust, mutually beneficial trade and investment partnership.

Casey Barnett, President of the American Chamber of Commerce in Cambodia (AmCham), has expressed optimism that Cambodia could secure additional tariff reductions from the United States amid growing economic and political pressure on Thailand.

His remarks were made during the Tax Forum held on October 10, at Tax Tower in Phnom Penh, where he discussed ongoing trade negotiations and legal developments in the US that could shape future tariff policies.

Barnett revealed that a Cambodian delegation led by Deputy Prime Minister Sun Chanthol is preparing to negotiate with the US to reduce reciprocal tariffs on seven key products.

“The Cambodian team, led by Deputy Prime Minister Sun Chanthol, is planning to negotiate and is currently asking the US to reduce reciprocal tariffs on seven products,” he told reporters. “I think there is a chance that if President Trump succeeds in pressuring Thailand to sign a peace agreement, if this happens, I believe there is a good chance for Cambodia to receive further tariff reductions from the US.”

He also explained that the current US tariff structure under President Donald Trump’s administration is facing serious legal challenges. “Please be informed that in the US, there is a lawsuit claiming that President Trump’s tariffs are not in accordance with US law, and the district court ruled that these tariffs are illegal,” Barnett said. “The US Court of Appeals has agreed with the district court’s decision, so the case is now heading to the Supreme Court, which will decide between December this year and June next year.”

Barnett went on to contrast Cambodia’s swift implementation of tariff commitments with Thailand’s delayed action. “Cambodia agreed to lower the tariff rate on US goods to 0 percent and officially implemented it immediately, while Thailand has not yet done so,” he emphasised.

He added that the US strategy toward Thailand is largely economic. “President Donald Trump pushes for a peace signing at the ASEAN meeting,” Barnett noted. “Whether he succeeds depends on Thailand. I believe the pressure from the US on Thailand is probably economic pressure, aimed at achieving broader strategic goals in the region.”

Barnett’s comments highlight Cambodia’s proactive trade stance and the potential opportunities arising from shifting US regional strategies, legal rulings, and diplomatic negotiations.

Economist Darin Duch has expressed optimism that ongoing discussions with the United States could lead to reduced tariff rates, which would deliver mutual benefits for both economies.

Speaking to Khmer Times, Darin described the trade agreement with the US as “a keystone of Cambodia’s export-led growth strategy and a signal of long-term market confidence.” He said Cambodia is well-positioned to engage with Washington, citing its strong commitments to economic reform, the rule of law and regional stability.

He added that Cambodia’s resilience and adaptability would help sustain competitiveness, attract investment and safeguard jobs. The government has already formed a working group to negotiate with US counterparts, focusing on trade reforms and institutional support for exporters.

Darin also stressed the importance of trade diversification and expressed appreciation to President Trump for supporting regional peace efforts, which could pave the way for tariff reductions.

Bilateral trade between Cambodia and the United States surged to $9.56 billion in the first nine months of 2025, marking a robust 22.6 percent increase compared to the same period last year, according to the General Department of Customs and Excise (GDCE) released on Friday.

Cambodian exports to the US accounted for the lion’s share of this figure, reaching $9.28 billion, up 22 percent year-on-year. Imports from the US also saw a notable rise, totalling $283.63 million — a 46.9 percent increase compared to last year.

The GDCE’s latest report reaffirmed that the US remains Cambodia’s largest export market during the January-September period. Alongside the US, the top five export destinations for the Kingdom were Vietnam, China, Japan, and Canada.

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