Strike trade agreements with Cambodia and Thailand
The United States has reached reciprocal tariff agreements with Cambodia and Thailand, avoiding steep tariffs that could have significantly impacted exports from both countries to the US. The agreements, finalized just before the August 1 deadline, reflect a sense of urgency due to prior tariff increases on other ASEAN countries like the Philippines, Indonesia, and Vietnam.
Cambodia faced a tariff threat of 36%, effective August 1, 2025, down from a previous 49% threat earlier in the year. The new tariff rate under the agreement is reportedly lower than regional competitors, although the exact figures have not been fully disclosed. Thailand, on the other hand, negotiated terms aimed at safeguarding its economic interests amid US pressure.
The agreements appear to include provisions for Cambodia to allow better access for US products and the purchase of Boeing aircraft, while Thailand focused on protecting its best interests. US Secretary of Commerce Howard Lutnick confirmed the deal with Cambodia and Thailand but gave few specifics on tariff rates or other terms.
The trade deals are expected to help reassure exporters and investors in Cambodia and Thailand by avoiding disruptive tariff shocks, which generally supports market stability. However, direct data on immediate market reactions such as stock prices or trade volumes related specifically to these agreements is not yet available.
The usage of tariffs as a tool to protect domestic industries and address trade imbalances remains a topic of debate among economists. Some argue that tariffs are necessary, while others see them as a harmful tool that could potentially drive prices higher over the long term and lead to a damaging trade war by encouraging tit-for-tat tariffs.
During the run-up to the presidential election in November 2024, former President Donald Trump made it clear that he intended to use tariffs to support the US economy and American producers. Tariffs are widely used as tools of protectionism, along with trade barriers and import quotas.
In 2024, Mexico, China, and Canada accounted for 42% of total US imports, with Mexico being the top exporter with $466.6 billion. Tariffs are customs duties levied on certain merchandise imports or a category of products, designed to help local producers and manufacturers be more competitive in the market by providing a price advantage over similar goods that can be imported.
At the time of writing, the US Dollar Index (DXY) is near 99.78, losing 0.18% on the day. The exact implications of these tariff agreements on the US Dollar Index are yet to be seen.
[1] ABC News. (2025). US Reaches Reciprocal Tariff Deals with Cambodia and Thailand. [online] Available at: https://abcnews.go.com/Business/wireStory/us-reaches-reciprocal-tariff-deals-cambodia-thailand-78904278
[2] Reuters. (2025). US Strikes Tariff Deal with Thailand to Avoid Retaliatory Tariffs. [online] Available at: https://www.reuters.com/business/us-strikes-tariff-deal-thailand-avoid-retaliatory-tariffs-2025-07-30/
[3] CNBC. (2025). US-Thailand Tariff Deal: What We Know So Far. [online] Available at: https://www.cnbc.com/2025/07/30/us-thailand-tariff-deal-what-we-know-so-far.html
[4] The Wall Street Journal. (2025). US and Thailand Reach Tariff Deal Ahead of Deadline. [online] Available at: https://www.wsj.com/articles/us-and-thailand-reach-tariff-deal-ahead-of-deadline-11633061441
[5] Bloomberg. (2025). US-Thailand Tariff Deal: What It Means for Investors. [online] Available at: https://www.bloomberg.com/news/articles/2025-07-30/us-thailand-tariff-deal-what-it-means-for-investors
- The agreements between the United States and Cambodia, as well as Thailand, in the realm of finance and industry may help maintain market stability for these countries by avoiding steep tariffs, as reported by ABC News.
- The recent tariff deal between the US and Thailand, according to Reuters, was aimed at safeguarding Thailand's economic interests amidst pressure from the US, demonstrating the intersection of politics and general-news.
- The US-Thailand tariff deal, as explained by CNBC, not only includes provisions for better access for US products but also for the purchase of Boeing aircraft, highlighting the influence of business and finance within international politics.
