Trump's tariff war against Cambodia postponed for 90 days

US President Donald Trump has announced a 90-day suspension of his tariffs, which were due to impose 49% customs duties on Cambodian goods from 9 April 2025.

Donald Trump

This pause comes amid growing criticism and instability in global markets triggered by the administration's aggressive trade policies.

Cambodia faces economic backlash

Cambodia, along with other nations such as Laos and Myanmar, were among the hardest hit by the announcement of Trump's tariff plan, which targeted dozens of trading partners. Analysts argue that high tariffs could disrupt Cambodia's export-oriented economy by increasing costs for US consumers while bringing Southeast Asian nations closer to Beijing's sphere of influence. Cambodian experts have called these duties a ‘lose-lose game,’ warning of higher production costs, job losses, and decreased competitiveness for industries dependent on imported materials.

Trump's attitude, as emphasised by many Cambodian officials, also contrasts sharply with the praise he had given Cambodia during the COVID-19 pandemic. In February 2020, he had thanked the country for allowing Carnival's Westerdam cruise ship to dock, promising that ‘the United States will remember your courtesy’. Critics are now wondering whether this goodwill has been forgotten in favour of protectionist policies.

The 90-day break: a tactical retreat?

The decision to postpone tariffs follows global economic fallout. US stock markets recorded significant losses last week, and economists have revised their recession forecasts upwards to almost 45% for the coming year. Trump's announcement of a universal base tariff of 10% during the suspension period offered temporary relief to some countries, but leaves uncertainty hanging over future trade relations.

As Trump steps up tariffs on China to 125%, his administration appears to be recalibrating its approach with other nations. The pause is seen as an opportunity for new negotiations, although experts warn that it could only delay much deeper economic disruption.

Strategic implications in Southeast Asia

Tariffs also have geopolitical ramifications. Analysts suggest that targeting Cambodia, a close ally of China, could inadvertently strengthen Beijing's influence in the region. By pushing China's neighbours into closer economic alignment with Beijing, the United States risks ceding strategic ground in its competition with China.

During the negotiations over the next three months, the global trading community will be watching closely to see whether this pause signals a shift towards de-escalation or simply a temporary respite in an intensifying trade war.