Core Viewpoint - Cambodia has signed a tariff agreement with the United States, becoming the second Southeast Asian country to do so, following Vietnam, in response to pressure from the U.S. government [1][13]. Group 1: Tariff Agreement Details - The agreement reached between Cambodia and the U.S. temporarily reduces tariffs to 20%, avoiding a potential 49% tariff that could have severely impacted Cambodia's export-dependent economy [3][11]. - Approximately 40% of Cambodia's total exports, projected at $26.2 billion in 2024, are directed to the U.S., with textiles and footwear being the primary export sectors [3][19]. - The agreement includes provisions for "origin tracking" and "third-party circumvention," requiring Cambodia to enhance oversight of the sources of raw materials used in exports to the U.S. [3][5]. Group 2: Economic Impact and Compliance Requirements - If the raw material sourcing does not meet U.S. requirements, a punitive tariff of 40% will be imposed for "third-party circumvention" [6]. - Cambodian exporters must submit over 12 types of documentation, including procurement contracts and customs declarations, to comply with the agreement [6][11]. Group 3: Broader Implications for Southeast Asia - The U.S. aims to establish a clear and controllable supply chain in Southeast Asia, reducing reliance on Chinese manufacturing [7][19]. - Similar agreements have been made with Vietnam, indicating a trend where the U.S. is pushing Southeast Asian countries to exclude Chinese products from their export systems [9][20]. - Other Southeast Asian nations, such as Indonesia and Thailand, are also navigating their trade relationships with the U.S. amid concerns about maintaining balance with China [14][15][19].