Tariff respite after the clash
Thailand and Cambodia welcomed a 19% trade tariff announced by US President Donald Trump, avoiding a threatened levy of 36% days after he intervened to help broker a ceasefire in their deadly border conflict.
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 favour, 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,' Prime Minister Hun Manet wrote on Facebook yesterday 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 that 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, we'll buy whatever we can – medical equipment, agricultural products – from the United States too, 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$10bil 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 US 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 finalised deal, setting US 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.' — AFP
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