Overview

• The White House announced a 19% levy on imports from Thailand and Cambodia after a US-mediated border truce, down from a threatened 36% rate.
• Cambodia’s deputy prime minister said the reduced tariff averted the collapse of its garment and footwear sector, safeguarding nearly one million workers.
• Thailand secured relief by pledging to scrap duties on 90% of its goods and to reduce its $46 billion trade surplus by 70% over three years.
• The agreements were tied to the immediate ceasefire, reflecting President Trump’s broader tactic of using steep reciprocal tariffs to extract political and security concessions.
• Details of the framework remain to be finalized, including Cambodia’s plan to purchase Boeing aircraft and expanded market-access commitments.