The United States' reciprocal global tariffs are a lose-lose game that can escalate trade tensions and provoke retaliatory measures from other countries, ultimately damaging international trade relations, Cambodian experts said on Friday.

U.S. President Donald Trump on Wednesday announced reciprocal tariffs on goods imported from dozens of its trade partners, including Cambodia. The U.S. tariffs on goods imported from Cambodia will be increased by 49 percent, which will take effect on April 9, 2025.

"This move explicitly highlights the U.S. selfishness, protectionism, unilateralism and isolationism," Kin Phea, director-general of the International Relations Institute of Cambodia, an arm of the Royal Academy of Cambodia, told Xinhua.

"These tariffs raise the cost of imported goods for consumers and businesses, leading to higher prices and reduced purchasing power," he said. "Additionally, domestic industries that rely on imported materials may experience increased production costs, potentially resulting in job losses and diminished global competitiveness."

Phea added that over time, such protectionist policies can stifle economic growth and innovation by discouraging companies from optimizing supply chains or investing in new technologies.

"These policies will not only hurt the global economy but also that of the U.S. itself," he said. "It's vital that all nations work together harder to uphold an inclusive and pluralistic global trade system and establish alternatives."

Joseph Matthews, a senior professor at the BELTEI International University in Phnom Penh, said Trump's policies are undermining Washington's credibility and standing within the international community.

"His 'America First' strategy is marginalizing and isolating the U.S. globally," he told Xinhua. "He is putting the U.S. economy at risk, potentially leading it into a recession."

Matthews said America's allies, such as Japan and South Korea, are not spared from these new tariff rates.

"Overall, the global relations between the U.S. and the rest of the world are deteriorating, reaching an all-time low," he said.

Thong Mengdavid, a lecturer at the Institute for International Studies and Public Policy of the Royal University of Phnom Penh, said Trump's tariff policy is causing higher consumer prices, increased production costs, supply chain disruption and global retaliation.

"One of the most immediate effects is the increase in the cost of imported goods, which, in turn, leads to higher prices for consumers," he told Xinhua. "As tariffs increase the cost of raw materials, components, and finished products, American businesses face higher production costs, which are often passed down to consumers."

Furthermore, tariffs can disrupt established supply chains, as companies that rely on importing goods and materials from abroad face greater uncertainty and higher costs, potentially leading to delays in production and reduced profitability.

"For many U.S. companies, tariffs also lead to a loss of market access and diminished competitiveness in global markets, affecting their ability to expand and maintain profitability," Mengdavid said.

Seun Sam, a policy analyst at the Royal Academy of Cambodia, said Trump's tariff hike policies are a "disaster for the American people" because consumers will bear the brunt of his tariffs.

"When the tariff is high, businesspeople will increase the price to sell in the U.S., and American buyers will pay the price of the products they need," he told Xinhua.

"I think the hikes in U.S. import tariffs are unfair as they go against the principle of free trade and fair competition," he added.

Penn Sovicheat, secretary of state of the Cambodian Ministry of Commerce, said the ministry is assessing the impact of the new tariff rate and trying to find a solution to the issue. 

Related

Go to Forum >>0 Comment(s)