Cambodia Buys Boeing Jets in Tariff Quid Pro Quo

‍DALLAS — Cambodia has signed a deal with the United States to purchase 20 Boeing 737 Max aircraft in exchange for reduced tariffs. 

The country's national airline, Air Cambodia (K6), is looking to buy 10 aircraft with an option for 10 more.  However, there is no clear information yet on the price or the delivery timeline for these jets.

The development comes amid Washington’s decision to impose a 19% reciprocal tariff on Cambodian goods, down from the earlier rate of 36%.

“We thank President Trump for setting our tariff rate at 19%,” said Sun Chanthol, Deputy Prime Minister of Cambodia.

The deal also marks a setback for Chinese aircraft manufacturer COMAC, which had been lobbying Air Cambodia (K6) to consider its C919 jet as an alternative.

Air Cambodia's Current Fleet

Air Cambodia (K6), formerly known as Cambodia Angkor Air, was rebranded earlier this year.

Air Cambodia’s current fleet includes six aircraft. According to planespotters.net, the carrier operates three ATR-72s, two Airbus A320s, and a single Airbus A321, seen in the featured image. The potential addition of 20 Boeing 737 MAX aircraft could significantly enhance and expand the airline’s network and operations.

Trade Context

Ever since President Trump assumed office, he has taken measures to address the U.S. trade deficit. This includes imposing reciprocal tariffs on countries that charge higher tariffs on U.S. goods, contributing to the imbalance. 

The President has, at times, used tariffs as a tool to encourage trading partners to lower their tariffs or to align more closely with U.S. trade practices. This has sometimes included asking countries to purchase Boeing jets in exchange for reduced tariffs. The K6 order is a clear example of this approach.