Photo Credit: Reuters
The United States has imposed a 19% tariff on imports from Thailand and Cambodia, down from the initial 36% rate threatened earlier this month. This adjustment follows US President Donald Trump’s earlier warning of potential trade restrictions unless the two countries resolved a deadly border conflict.
Malaysia, which played a mediating role in brokering a ceasefire, also received a 19% tariff rate, aligning with previously announced rates for Indonesia and the Philippines, neighboring Southeast Asian nations.
Earlier this week, Thai and Cambodian leaders agreed to an immediate ceasefire to halt severe clashes— the worst between the two countries in over ten years— which resulted in over 40 casualties. Nonetheless, the ceasefire has been tested, with Thailand accusing Cambodian forces of unprovoked firing, violating the agreement.
The new tariffs were announced alongside Trump’s statement that the US will maintain minimum global tariff levels at 10%, lower than the previously threatened minimum of 15% or higher, according to a White House announcement on Thursday.
US Commerce Secretary Howard Lutnick mentioned in an interview on Wednesday night that deals had been secured with both Thailand and Cambodia but did not elaborate further. Recently, the US has engaged in a series of negotiations involving tariffs, including an agreement with South Korea that would impose a 15% duty on its exports to the US, and plans to levy a 25% tariff on goods from India.
In an effort to avoid higher punitive tariffs, Thailand offered increased market access for US products, pledging to eliminate tariffs on 90% of its goods. The country also committed to reducing its $46 billion trade surplus by 70% over three years through non-tariff measures and addressing the rerouting of goods produced abroad.
Prior to the tariff announcement, Thai Finance Minister Pichai Chunhavajira indicated he expected the US to set tariffs similar to those of other Southeast Asian nations, which have faced tariffs around 20%. Last year, the US was Thailand’s largest export market, accounting for roughly 18% of the country’s total shipments.
Securing a lower tariff rate is vital for Thailand’s trade-reliant economy, which is already under pressure from high household debt and sluggish domestic consumption in the region.