Saturday, August 2, 2025

Cambodia to scrap tariffs, buy Boeing jets in US trade deal

Date:

Cambodia will scrap tariffs on US goods and pledged to buy as many as 20 Boeing Co. 737 Max jets in a bid to narrow its trade gap with Washington, according to Deputy Prime Minister Sun Chanthol.National carrier Air Cambodia Co. is negotiating a deal for 10 planes with an option for 10 more, Sun said in an interview Friday, without disclosing a price or delivery schedule.
The national carrier currently only has six planes in its fleet, including Airbus SE jets, according to Planespotters.net.
“In order to improve the trade imbalance, they suggested we look into tariff barriers, non-tariff barriers, and also any products we can acquire from the US,” Sun Chanthol said. “We have zeroed out our tariffs.”The Trump administration earlier Friday announced a 19% tariff on imports for the country and neighbouring Thailand, down from the 36% initially proposed for both. President Donald Trump had threatened to block trade deals with both countries over their deadly border clash earlier this month.

The commitment to buy planes from Boeing could serve as a disappointment for Chinese rival, Commercial Aircraft Corporation of China Ltd. The company, known as Comac, had lobbied hard to woo Cambodia and Air Cambodia to buy its rival jets, including the C919.Boeing didn’t immediately respond to a request for comment. Comac couldn’t immediately be reached for comment.

Sun Chanthol added that Cambodia agreed with the US that its import inspections regime and labour standards “needs improvement,” citing similar points on so-called non-tariff barriers that the US has singled out in negotiations.

Cambodia has long had a trade surplus with the US, the kind of trading relationship Trump has sought to reverse. The Southeast Asian nation exports apparel, footwear and agricultural products to the US, while importing far fewer American goods.

“We express our appreciation and gratitude to President Trump for granting us this 19% reciprocal rate,” Sun Chanthol said. He added that Trump should be nominated for the Nobel Peace Prize for pushing Thailand and Cambodia to a ceasefire.

Pakistan made a similar proposal after recent clashes with India, which Trump said he also settled by using trade deal threats. New Delhi denies that framing.

Read Also: Copper set for weekly decline after Trump’s surprise tariff move

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