# US Lowers Tariffs to 19% for Thailand and Cambodia Amid Ceasefire Agreement

- Link: https://www.thailand-business-news.com/trade/237285-us-lowers-tariffs-to-19-for-thailand-and-cambodia-amid-ceasefire-agreement
- Published: 2025-08-01T15:26:21+07:00
- Author: Chloe Zhou

**BANGKOK, 1 August 2025** — The United States has set a new 19% import tariff on
goods from Thailand and Cambodia, significantly lower than the previously threatened
36%, following a peace agreement that ended a deadly border clash between the two
Southeast Asian neighbors.

The tariff announcement came after high-stakes negotiations and a ceasefire brokered
with support from Malaysia, which also saw its own tariff rate set at 19%—aligning
with existing rates for Indonesia and the Philippines.

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### Trade Negotiations Avoid Major Economic Hit

In an effort to avert harsher trade penalties, Thai officials offered wide-ranging
concessions:

 * Scrapping tariffs on **90% of US goods**
 * Pledging a **70% reduction of its $46 billion trade surplus** over three years
 * Targeting non-tariff measures such as curbing **product rerouting**

Finance Minister Pichai Chunhavajira expressed relief, noting that the final 19%
rate aligns with regional expectations and provides a buffer against further economic
fallout.

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### Strategic Importance of US Market

With the United States accounting for **18% of Thailand’s exports last year**, securing
a lower tariff rate is critical for preserving growth in the country’s **trade-dependent
economy**. Analysts warn that Thailand’s recovery is already constrained by high
household debt and weak domestic demand.

Despite the ceasefire agreement, tensions remain fragile—Thailand recently accused
Cambodian troops of violating the truce with unprovoked fire. Nonetheless, the tariff
resolution marks a key turning point in diplomatic and economic relations between
the two countries and the US.

For ongoing coverage of Southeast Asia’s trade developments, visit [Thailand Business News](https://www.thailand-business-news.com/).