CAC News

KUALA LUMPUR, Oct. 26 — U.S. President Donald Trump has approved a 0% tariff scheme for selected goods from Malaysia, Cambodia, and Thailand, marking a major shift in trade relations between Washington and key Southeast Asian nations. The announcement was made during the ASEAN Summit in Kuala Lumpur, according to a report by DetikFinance.

Previously, the three nations faced a reciprocal tariff rate of 19% on a wide range of exports to the United States. Under the new arrangement, several products — including agricultural goods such as cashew nuts, cassava, and rice — will now enjoy duty-free access to the U.S. market.

Private Sector Reactions

Industry leaders across the region have welcomed the decision.
Mr. Wong Chiv, President of the Cambodia-China Cassava Association, hailed the move as “good news for everyone.” He noted that Cambodia recently signed an agreement with the U.S. establishing a 0% export tariff on cassava products, in contrast to Vietnam’s current 20% rate.

Dr. Thun Sopheak urged local enterprises to leverage the new opportunities responsibly. “With this chance to compete globally, businesses must enhance their competitiveness,” he said, emphasizing that quality and product safety would be critical to long-term success.

Mr. Silot Uon , President of the Cashew Nut Association of Cambodia (CAC), also praised the decision, stating that the tariff reduction “confirms the Cambodian government’s continued efforts to secure preferential treatment from the United States.”

Expanded U.S.–Cambodia Cooperation

In addition to the tariff cuts, the White House announced a series of new initiatives aimed at strengthening ties with Cambodia. According to a statement released by the U.S. Mission to ASEAN, Washington will lift the ban on arms sales to Cambodia and resume the bilateral ANGKOR SENTINEL defense exercise, which was last held in 2017.

The United States will also increase the number of seats for Cambodian military officers at prestigious U.S. institutions such as West Point and the Air Force Academy. Furthermore, both nations agreed to expand cooperation against transnational crime, including drug trafficking and online scam networks.

Symbolic Gesture from Phnom Penh

In a move highlighting Cambodia’s appreciation for Washington’s outreach, the Cambodian government has renamed U.S.-built National Road 4 — the vital highway connecting Phnom Penh to Sihanoukville — as “Donald Trump Road.”

The renaming, officials say, honors the U.S. President’s efforts to ease tensions between Thailand and Cambodia. Analysts view the gesture as a sign of Cambodia’s attempt to balance its geopolitical ties between Washington and Beijing.

A New Era for ASEAN–U.S. Trade

The 0% tariff scheme marks one of the most significant U.S. trade policy shifts in Southeast Asia in recent years. Analysts suggest it could boost agricultural exports, stimulate regional economies, and enhance U.S. influence in a region where China’s economic footprint has grown considerably.