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March 13, 2025

Cambodia Navigates Geopolitical Shifts and Changes in US Foreign Policies

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March 13, 2025

As the Trump administration’s “America First” trade and foreign assistance policies are formulated, ASEAN nations, including Cambodia, are reassessing their foreign and economic strategies to maintain stability and growth. With the recent imposition of US import tariffs on goods made in China and the European Union, concerns over rising trade barriers are escalating. Cambodia, a small but strategically positioned economy, is leveraging regional partnerships such as the Regional Comprehensive Economic Partnership (RCEP) to mitigate the risks posed by U.S. protectionism. Experts emphasize the need for greater ASEAN regional cooperation and advocating for a rules-based multilateral approach to sustain economic resilience while avoiding entanglement in great-power rivalries. 

Policymakers in Cambodia are already preparing for the challenges ahead, with a focus on trade diversification, investment policies, and regional cooperation. While the U.S. remains a key market, Cambodia is increasingly attracting Chinese businesses seeking to balance against American tariffs. This shift underscores the country’s efforts to maintain economic sovereignty by fostering a competitive market environment that aligns with national interests. As ASEAN faces mounting geopolitical pressures, Cambodia’s proactive approach in regional economic integration and multilateral diplomacy will be critical in safeguarding its growth and strategic autonomy in a rapidly shifting global landscape. 

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