Observers say the ongoing tariff dispute between Cambodia and the United States goes beyond a simple trade imbalance, touching on deeper concerns including geopolitical alignment, democracy, and human rights.
Speaking to The Cambodia Daily, Sek Socheat, a development policy and research adviser, said Washington is tightening tariffs on countries it sees as bolstering China’s economic ambitions. Cambodia, he said, falls squarely within that category.
In this context, he urged Phnom Penh to maintain a position of neutrality. “If Cambodia leans too far towards China, it loses. If it leans too far towards the US, it also loses,” Mr. Sek Socheat explained. “The only path forward for national interest is to remain in the middle.”
He warned that failure to reach a successful resolution with Washington could result in significant economic setbacks. Investors, he noted, may shift to countries like Thailand or Vietnam that enjoy lower US import duties.
Mr. Sek Socheat also called on the Cambodian government to take a more inclusive approach in its negotiations, encouraging broader input from stakeholders to ensure better outcomes in upcoming rounds of talks. “The working group must consider all perspectives in order to succeed in the third round of discussions,” he said.
In a statement issued on June 7, 2025, Cambodia’s government confirmed that its bilateral trade and investment coordination group had recently attended a second round of talks in Washington, seeking to reduce a 49 percent tariff imposed by the US on Cambodian exports.
During the session, Cambodian officials met with Sarah Ellerman, Deputy Assistant US Trade Representative, to discuss the draft framework for a potential trade agreement. Both sides reportedly sought consensus on various provisions in a spirit of mutual understanding.
However, the draft agreement made no mention of how much the US might lower the tariff rate. Nor did it clarify which specific provisions had been agreed upon.
Reacting to the talks, Cambodia Watchdog Council spokesperson Muong Nareth wrote on Facebook that Cambodia had returned “empty-handed” for a second time following the negotiations in Washington.
He lamented that while Phnom Penh continues to request tariff relief from the US, there has been no improvement in Cambodia’s human rights conditions, democratic governance, or labor freedoms. These are all factors that could help support its case at the negotiating table.
On April 2, 2025, the United States imposed a 49 percent reciprocal tariff on Cambodian goods entering its market. That was the highest rate applied to any ASEAN member state.
But just a week later, on April 9, 2025, Washington agreed to provisionally lower the rate to 10 percent for 90 days, starting from April 10. That window now leaves Cambodia with just 30 days remaining to reach a settlement before the tariff reverts to its full rate on July 10, 2025.
