Thailand, Cambodia welcome reduced tariff rates

Cambodia said it would drop all tariffs on imports from the United States and order up to 20 Boeing 737s for its national airline in a further effort to woo the Trump administration.

Dozens of countries face steep levies under the tariff regime approved by Trump in Washington on Thursday, set to come into force in a week.

He had originally threatened a swingeing 49% tariff on Cambodia as part of his "Liberation Day" measures aimed at rebalancing world trade in America's favor, but cut it to 36% last month.

"This is the best news for the people and economy of Cambodia to continue to develop the country," Cambodian Prime Minister Hun Manet wrote on Facebook after the 19% levy was announced.

The tariff announcement came days after Trump intervened to help broker a ceasefire between Thailand and Cambodia to end border clashes that left more than 40 people dead.

Deputy Prime Minister Sun Chanthol told reporters Cambodia would "zero out all tariff lines" for the United States -- more than 11,000 in total.

And he said a "firm offer" had been made to buy 10 Boeing Max 8s for Air Cambodia, with an option to buy another 10.

"In addition to that we're going to buy whatever we can -- medical equipment, agricultural products -- from the U.S. also, as long as the price is competitive," he said.

Cambodia is a major manufacturer of low-cost clothing for Western brands, with garment products accounting for most of its US$10 billion in exports to the United States last year.

Many factories in Cambodia are Chinese-owned and the White House has accused the kingdom of allowing Chinese goods to stop over on the way to U.S. markets, thereby skirting steeper rates imposed on Beijing.

Thailand had been negotiating with Washington for weeks, seeking a reduction in the threatened 36% levy.

"This finalized deal, setting U.S. import tariffs at 19%, marks a major success for Thailand," Thai government spokesman Jirayu Huangsab said in a statement.

"It represents a win-win approach aimed at preserving Thailand's export base and long-term economic stability."

The United States' goods trade deficit with Thailand hit $45.6 billion in 2024, up 11.7% from the year before, according to U.S. Trade Representative data.

Thailand has struggled to reignite its economy since the Covid-19 pandemic, when travel restrictions hammered the key tourism sector.

The Thai government in May cut its 2025 economic growth forecast to 2.3-3.3% , from 3.2-4.2%, citing uncertainty over tariffs. Growth in 2024 was 2.5%.