Cambodia holds trade talks with U.S. as 49% tariff weighs on outlook

Reuters

Thu, May 15, 2025, 1:25 AM 2 min read

(Reuters) -Cambodia has held its archetypal circular of commercialized talks with the United States successful Washington, its authorities said connected Thursday, arsenic it tries to negociate implicit 1 of the highest tariff rates imposed by the Trump administration.

The United States is Cambodia's biggest export market, with the Southeast Asian state facing large implications for its important textiles and footwear manufacturing assemblage if it is incapable to negociate a simplification successful a 49% tariff rate.

"Both sides exchanged their views successful a frank and constructive mode successful an ambiance of communal knowing connected ways to further fortify bilateral commercialized and investment," Cambodia's authorities said successful a statement, adding a 2nd circular of talks would beryllium held successful aboriginal June.

It made nary notation of the tariffs and said talks were held betwixt its Deputy Prime Minister Sun Chanthol, Commerce Minister Cham Nimul and Sarah Ellerman, the adjunct U.S. commercialized typical for Southeast Asia and the Pacific.

The Office of the U.S. Trade Representative did not instantly respond to a petition for remark extracurricular of regular moving hours.

Cambodia's 49% tariff complaint is the highest of the Southeast Asian countries affected, which are among those hardest hit.

Moody's past period changed its outlook for Cambodia to antagonistic from stable, citing downside risks to its maturation prospects fixed the uncertainty implicit the U.S. tariffs.

Cambodia has a large commercialized surplus with the United States, with its exports to the U.S. marketplace accounting for 37.9% of its full shipments successful 2024, which were valued astatine adjacent to $10 billion, according to authoritative data.

Much of that was garments and footwear, a assemblage captious to its $49.8 cardinal system and a cardinal root of employment successful manufacturing goods for brands that see Adidas, H&M, Ralph Lauren and Lacoste.

(Reporting by Martin Petty successful Bangkok; Editing by John Mair)