WASHINGTON D.C. — The United States has lowered the import tax on items from Thailand and Cambodia from 36% to 19%. This news comes after US President Donald Trump made a strong warning earlier this month, saying he would stop trade accords with both countries if they didn’t stop a violent border fight that had killed more than 40 people. On Thursday, July 31, 2025, the new tariff rates were made public. At the same time, Trump said that the US will keep the lowest global tariff rates at 10%, down from the 15% or higher floor that had been threatened before.
On Thursday, July 31, 2025, Trump announced the revised tariff rates and said that the US would keep the lowest global tariff rates at 10%, down from the previous threat of 15% or more.
The choice shows a clear connection between the Trump administration’s trade policy and its diplomatic initiatives. Earlier this week, leaders from Thailand and Cambodia agreed to an immediate truce in order to stop the deadliest fighting between the two Southeast Asian neighbors in more than ten years. But the truce has already hit some bumps in the road, with Thailand accusing Cambodian troops of firing without cause, which is against the deal.
Malaysia, which helped bring about the truce between Thailand and Cambodia, has also been given a 19% tariff discount. This matches rates already announced for other Southeast Asian nations, like Indonesia and the Philippines. This shows that the US is taking a consistent approach to tariffs for these countries in the region.
Howard Lutnick, the US Secretary of Commerce, said in an interview on Wednesday night that the US has made trade accords with both Thailand and Cambodia. However, he didn’t give any details at the time. In the last few days, the Trump administration has made a lot of pronouncements and requests about tariffs on its trading partners. This includes a deal with South Korea, which will have to pay a 15% tax on its exports to the US, and a promise to charge a 25% tax on goods from India.
Thailand has made big concessions at the last minute to try to avoid the higher punitive penalty. It promised to do rid of tariffs on 90% of its goods, which would make it easier for US goods to get into its markets. Bangkok has vowed to put in place non-tariff measures to lower its huge $46 billion trade surplus with the US by 70% in three years. Thailand also promised to prevent items manufactured in other countries from transiting through its territory to avoid US tariffs.
Before the new tariff rates were officially announced, Thai Finance Minister Pichai Chunhavajira said he hoped the US would set a rate close to that of its Southeast Asian neighbors, which had rates around 20%. Last year, the United States was Thailand’s biggest market for goods exports, making up about 18% of all shipments from the country.
Getting the US to cut its tariff rate is considered as very important for protecting Thailand’s economy, which depends on trade, from more problems. The country’s economy is already under strain from things like the largest family debt in Southeast Asia and slow domestic spending. This makes solid export markets very important for its economic stability.