Tariff pressure: Cambodia’s “mafia state” factor enabling China’s influence

On July 8, 2025, the administration of Donald Trump announced a reduction in tariff pressure on Cambodia, lowering tariffs from a record 49% to 36%.

At the same time, Washington left room for further easing of the regime, contingent on Phnom Penh meeting several key U.S. demands by August 1: granting duty-free access for American goods, expediting the licensing of American technologies, and significantly reducing military, economic, and political engagement with China.

In response, the Cambodian government expressed readiness to continue negotiations with the United States but did not specify which concessions it was prepared to make to secure a “grand deal.”

The White House’s tariff letter was sent to Phnom Penh amid escalating border tensions between Cambodia and Thailand. This refers to significant strain in the disputed “Emerald Triangle” region, leading to casualties among military personnel, mutual troop deployments, a partial halt in trade, and logistical operations.