Analysts explain why Trump pushed for a truce between Thailand and Cambodia
Donald Trump (Photo: JIM LO SCALZO/EPA)

Tariffs imposed by the president of the United States Donald Trump threatened Thailand and Cambodia if they did not cease fire would have a major impact on the economies of both countries. About for the article LIGA.net said Matt Wheeler, Southeast Asia analyst at the International Crisis Group (based in the Thai capital Bangkok), and Gregory Poling, director of the Southeast Asia program at the Center for Strategic and International Studies (USA).

On July 26, Trump talked with the leaders of the two governments, calling for an immediate ceasefire, otherwise he threatened to impose 36% tariffs on both countries. Thailand's acting Prime Minister Phumtham Vejjajajayi and Cambodia's Prime Minister Hun Maneth thanked the US president for his diplomatic efforts.

The tariffs that Trump is threatening countries with would be "very destructive" for them, analyst Wheeler said.

Cambodia's economy is particularly vulnerable due to structural weaknesses – the country is dependent on the US market, which accounts for 40% of its exports, said expert Poling.

However, he added, Thailand would also be hit hard by the US tariffs: growth estimates for the country have recently been lowered to 1% due to tariffs and the overall global economic downturn.