Cambodia, US to begin tariff talks as 90-day suspension offers brief reprieve

Cambodia, US to begin tariff talks as 90-day suspension offers brief reprieve
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By bno - Bangkok Office April 11, 2025

The United States has agreed to Cambodia’s proposal to begin negotiations on tariffs, following a formal request from Prime Minister Hun Manet, Cambodia’s Ministry of Commerce said on April 10, Khmer Times reported.

“The Royal Government received a positive response from the United States side on the request to open negotiations for a common solution,” the ministry said in a statement, referencing Hun Manet’s letter dated April 4. An inter-ministerial working group led by Deputy Prime Minister Sun Chanthol, who is also First Vice-President of the Council for the Development of Cambodia, will lead the Cambodian side in talks, the ministry added. The announcement comes as U.S. President Donald Trump suspended tariffs for 90 days on all countries, including Cambodia.

However, business leaders cautioned that the temporary pause should not be seen as a long-term solution. “This pause should not be treated as a relief but as a period for firm action,” said a US businessman based in Cambodia, speaking to Khmer Times. “Countries must re-evaluate their trading patterns with the U.S. while discovering new opportunities and markets.” He cited Chinese electric vehicle maker BYD’s global expansion as a model for Cambodia to pursue high-value supply chains and diversify its export markets.

Robert Hwang, Deputy Chairman of the Textile, Apparel, Footwear and Travel Goods Association of Cambodia (TAFTAC), welcomed the suspension but emphasised the need for structural reforms. He called on the Cambodian government to support productivity improvements and reduce logistics and electricity costs, including by easing restrictions on solar power installations. Vikas Reddy, a researcher in economics and international relations at Ohio University, described the move as a “welcome development”.

“I am optimistic that Cambodia and other ASEAN countries can arrive at an amicable agreement during this 90-day window, as none of these countries have adopted retaliatory measures,” he said. “ASEAN needs the US as much as the US needs ASEAN.”

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