By
B2B Cambodia
on
This is a B2B Cambodia Special Market Update for 3 April 2025, reviewing the Cambodia Securities Exchange (CSX) and global markets.
Watch the video in English above.
- The United States on Wednesday unveiled a series of new tariffs stating a historic move as a “declaration of economic independence.” The White House claimed the tariff’s address unfair trade practices which is expected to send prices higher for American consumers and weaken economic growth.
- Using national emergency powers, the White House announced 10% tariffs on all imports into the United States, and even higher tariffs on goods from about 60 countries or trading blocs that have a high trade deficit with the US. That includes China and the European Union, which will be levied new duties of 34% and 20%, respectively.
- Cambodia faces the highest tariffs at 49%, followed by Vietnam (46%), Sri Lanka (44%), and China (34%).
- The US is Cambodia’s largest export market, accounting for 37.9% of the kingdom’s export value, and approximately 27% of GDP.
- The calculation on tariffs for Cambodia are as follows.
- Cambodia imports USD 322 million from the United States. Cambodia exports USD 12.67 billion to the United States.
- The trade deficit is USD 12.3 billion.
- For tariff calculation purposes the administration divided trade deficit of USD 12.3 by the total exports of USD 12.6 or a rate of 97%.
- The administration than implemented tariff of half the 97% rate or 49%.
- 10% tariff on all countries. will take effect April 5, 2025 at 12:01 a.m. EDT. Individualized reciprocal higher tariff on the countries with which the United States has the largest trade deficits will take effect April 9, 2025 at 12:01 a.m. EDT.
- Markets are in reacting swiftly midday.
- The Cambodian Securities Exchange Index is down 2.1 points to 407.01 or ½%. Hardest hit are is garment producer Grand Twins International down 1,54% and Pestech(Cambodia) down1.50%.
- The US Dollar is weaker versus major currencies with the US Dollar Index 1.24 points or 1.2% to 102.58
- In stock markets, Japan the Nikkei 225 was down 2.8%, Hong Kong 1.6, France CAC 40 down 1.8%, Germany’s DAX down 1.7%. U.S. Futures pointing to a big drop, Dow futures down over 1,000 points or 2.5%.
- Gold is down USD 13.50 to 3,153.10 and Crude Oil off USD 2.33 to USD 69,48