Cambodia US Reach Reciprocal Tariff Agreement After 49% Levy

Cambodia and the United States have reached a significant milestone in their trade negotiations, finalizing discussions on reciprocal tariffs. The agreement, led by Cambodian Deputy Prime Minister Sun Chanthol and U.S. Trade Representative Sarah E. Ellen, marks a pivotal move towards establishing a mutually beneficial trade relationship between the two nations. The consensus was reached on July 4, with both governments planning to release a detailed joint statement soon. This development follows strenuous negotiations aimed at revising significant tariff barriers previously imposed.

The core change involves aligning tariffs to enhance bilateral trade. While exact tariff rates and implementation schedules remain confidential, ongoing dialogue aims to solidify economic ties. This agreement targets potentially reducing existing barriers, reflecting efforts to revise the significant tariff barriers previously imposed. The Office of the Council of Ministers, Cambodia, stated, “In this meeting, both sides reviewed and agreed on the draft Joint Statement on Framework for United States-Cambodia Agreement on Reciprocal Trade, which will be released to the public soon.”

Cambodia's engagement with U.S. trade took a notable turn after an unprecedented 49% tariff was levied in April 2025, setting a stark context for these current negotiations. The agreement is significant for Cambodia as it seeks to diversify its trade partners and reduce its reliance on a single market. The country has been working to improve its trade relations with the United States, which is one of its largest trading partners. The reciprocal tariff agreement is expected to enhance bilateral trade and investment, benefiting both economies.

The announcement has been met with cautious optimism, as stakeholders await the release of the joint statement. The details of the agreement will be closely scrutinized by businesses, economists, and policymakers to assess its impact on trade flows and economic growth. The agreement is seen as a positive development in the ongoing efforts to strengthen economic ties between Cambodia and the United States. The timing of this agreement is notable, as it comes just days before a significant deadline. The Trump administration has been actively engaging in trade negotiations with various countries, aiming to secure favorable terms for American businesses and consumers. Cambodia's agreement with the United States is part of a broader strategy to address trade imbalances and promote fair trade practices.