The United States has imposed a 19% tariff on imports from Thailand and Cambodia, down from the initially threatened 36%, following a sharp warning from President Donald Trump earlier this month to block trade deals unless the two nations halted their deadly border clashes.
Malaysia, which helped broker a ceasefire between the two neighbours, also received the same 19% tariff rate. The figure is in line with previously announced rates for regional peers Indonesia and the Philippines.
The tariff reduction came just days after the leaders of Thailand and Cambodia reached an agreement to immediately end hostilities that had marked the worst military conflict between the two countries in over a decade. The clashes left more than 40 people dead.
Despite the ceasefire, tensions remain high. Thailand has accused Cambodian forces of violating the truce by opening fire without provocation, raising concerns over the agreement’s durability.
The updated tariff rates were announced alongside President Trump’s confirmation that the U.S. will maintain a global minimum tariff floor of 10%, lower than the previously floated 15% or more. The policy update was included in a White House statement released on Thursday.
U.S. Commerce Secretary Howard Lutnick told reporters Wednesday night that deals had been secured with both Thailand and Cambodia, although he offered no further details.
The announcement comes amid a flurry of trade activity, including a 15% tariff on South Korean exports and a proposed 25% duty on goods imported from India.
In a last-minute effort to avoid steeper tariffs, Thailand reportedly offered increased market access for U.S. goods, including the removal of tariffs on 90% of its own exports.
The country also pledged to implement non-tariff reforms to reduce its $46 billion trade surplus with the U.S. by 70% within three years, and to clamp down on transshipments from third-party countries.
Before the U.S. announcement, Thai Finance Minister Pichai Chunhavajira had expressed optimism that Washington would apply a tariff rate similar to those levied on other Southeast Asian economies, generally around 20%.
The U.S. was Thailand’s largest export market last year, accounting for roughly 18% of total outbound trade.
Analysts say the reduced tariff could offer much-needed relief to Thailand’s export-reliant economy, which is under pressure from sluggish domestic consumption and the highest household debt levels in Southeast Asia.
