Thailand and Cambodia welcomed a 19% US tariff imposed by President Trump, avoiding higher rates under his “Liberation Day” trade measures. The move comes amid global tariff hikes and a ceasefire brokered between the two Southeast Asian nations.
Bangkok: Thailand welcomed on Friday the 19 percent trade tariff imposed by US President Donald Trump as a "major success", a government spokesman said, averting a threatened levy of 36 percent.
Trump ordered stiff tariffs on dozens of trading partners in an effort to reshape global trade in favour of the US economy.
Trump’s “Liberation Day” Measures Reshape Global Trade
Thailand has been negotiating with Washington for weeks, seeking a reduction in the 36 percent levy on key exports threatened under Trump's "Liberation Day" measures.
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"This finalised deal, setting US import tariffs at 19 percent, marks a major success for Thailand," Thai government spokesman Jirayu Huangsab said in a statement.
“It represents a win-win approach aimed at preserving Thailand's export base and long-term economic stability.”
The United States' goods trade deficit with Thailand hit $45.6 billion in 2024, up 11.7 percent from the year before, according to US Trade Representative data.
Sluggish Post-Covid Growth Challenges Thai Economy
Thailand has struggled to reignite its economy since the Covid-19 pandemic, when travel restrictions hammered the key tourism sector.
The Thai government in May cut its 2025 economic growth forecast to 2.3-3.3 percent, from 3.2-4.2 percent, citing uncertainty over tariffs. Growth in 2024 was 2.5 percent.
Trump Brokers Ceasefire Between Thailand and Cambodia
The tariff announcement on Thursday in Washington came days after Trump intervened to help broker a ceasefire between Thailand and Cambodia.
Five days of heavy border clashes between the two neighbours -- their deadliest in decades -- left more than 40 people dead and 300,000 evacuated from their homes.
Cambodian PM says 19% US trade tariff ‘the best news’
Cambodian Prime Minister Hun Manet on Friday welcomed a 19 percent trade tariff imposed by US President Donald Trump, avoiding a threatened levy of 36 percent.
"This is the best news for the people and economy of Cambodia to continue to develop the country," Hun Manet wrote on Facebook.
Trump Reduces Cambodia Tariff From 49% to 19% Under New Regime
Trump had originally threatened a swingeing 49 percent tariff on Cambodia as part of his "Liberation Day" measures aimed at rebalancing world trade in America's favour, but cut it to 36 percent last month.
Dozens of countries face steep levies under the tariff regime approved by Trump in Washington on Thursday, set to come into force in a week.
Garment Exports Key to Cambodia’s $10 Billion US Trade
Cambodia is a major manufacturer of low-cost clothing for Western brands, with garment products accounting for most of its $10 billion in exports to the United States last year.
Many factories in Cambodia are Chinese-owned and the White House has accused the kingdom of allowing Chinese goods to stop over on the way to US markets, thereby skirting steeper rates imposed on Beijing.
The tariff announcement came days after Trump intervened to help broker a ceasefire between Thailand and Cambodia to end border clashes that left more than 40 people dead.
