Following numerous in-person and online meetings, the US and Cambodia have reached an agreement and are currently drafting a statement that will outline a framework agreement regarding the “reciprocal” tariffs imposed by the Trump administration in April.
The final meeting between a Cambodian’s task force, led by Deputy Prime Minister Sun Chanthol, first vice-chairman of the Council for the Development Cambodia, and the US delegation, led by Sarah Ellerman, deputy US trade representative for Southeast Asia and the Pacific, took place this morning, July 4, said a press release from the Office of the Council of Ministers.
The US initially imposed a reciprocal tariff rate of 49% on all Cambodian imports, a figure which appeared to be based on the trade deficit between the two nations. Almost immediately, however, Trump reduced the figure to 10% for 90 days, a period which will expire on July 9.
Last night, the US president announced that Washington will begin sending notices to various countries on Friday, specifying the tariff rates they will face on imports to the US.
Trump acknowledged the complexity of negotiating with over 170 countries. Speaking to reporters on Thursday, he explained that the notices would be sent to 10 countries at a time, outlining tariff rates which will range from 20% to 30%.
Vietnam was the first country in ASEAN to sign an agreement on new tariff rates. They have been set at 20%. However, the US warned that if Vietnam engages in unfair trade practices by importing goods from other countries and labelling them as Vietnamese-made products, they will be subject to a 40% tariff.
