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B2B Cambodia
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This is a B2B Cambodia Special Market Update on 1 August 2025, Anthony Galliano, Group CEO of Cambodian Investment Management(CIM), goes into more detail on the terms cited in the latest Executive Order signed by U.S. President Donald Trump on July 31, 2025, titled “Further Modifying the Tariff Rates”, where the Trump administration established new “reciprocal tariff” rates impacting over 65 countries.
Cambodia’s adjusted reciprocal tariff is 19 per cent, down from the July 7 rate of 36 per cent, and April 2 rate of 49 per cent. Thailand, Indonesia, Malaysia, and the Philippines are also at 19 per cent.
Watch the video in English above.
- In an Executive Order dates July 31s titled “Further Modifying the Tariff Rates”, the Trump administration established new “reciprocal tariff” rates impacting over 65 countries. In the Executive Order the President cited “Certain foreign trading partners identified in Annex I to this order have agreed to, or are on the verge of concluding, meaningful trade and security agreements with the United States. Goods of those trading partners will remain subject to the additional ad valorem duties provided in Annex I to this order until such time as those agreements are concluded, and I issue subsequent orders memorializing the terms of those agreements.” Annex I states the “Countries and Territories” and the “Reciprocal Tariff, Adjusted.”
- Cambodia’s listed adjust reciprocal tariff is 19% down from the July 7th rate of 36% and April 2nd rate of 49%, Thailand, Indonesia, Malaysia, and The Philippines are also at 19%. As part of the framework deal, Cambodia has agreed to remove all tariffs on U.S. originated goods, 11,414 product categories, effectively setting its tariff rate to 0%. This was a key bargaining chip. However, excise and VAT still apply. Cambodia has also committed to purchasing 10 Boeing 737 MAX 8 aircraft for its national airline, with an option for 10 more in the future.
- President Trump tied trade negotiations to a ceasefire in the border clash between Cambodia and Thailand. Cambodia agreed, gaining diplomatic goodwill and significantly influencing the tariff discussions.Deputy Prime Ministe rand First Vice Chairman of the Council for the Development of Cambodia, Sun Chanthol, praised President Trump, calling him a “President of Peace” and deserving of the Nobel Peace Prize. He said Prime Minister Hun Manet personally appealed to Trump, citing Cambodia’s long history of war. He described the 19% tariff as a win for Cambodia, saying it would sustain and grow manufacturing. Chantol said the government is making further efforts in negotiating with the United States to lower tariffs to below 19% on certain priority goods such as clothing, shoes, and travel bags because these types of goods are not manufactured in the United States. This trade framework is still non binding and under negotiation, many specifics remain to be formally drafted and finalized
- While the executive order was signed on July 31, 2025, it becomes in effective August 7, 2025, alongside tariffs on other nations under the administration’s reciprocal tariff framework. It should also be noted that legal challenges still loom. Currently courts are reviewing whether Trump exceeded executive authority under the International Emergency Economic Powers Act, with major hearings scheduled even on July 31.