The US stab in the back: Arnaud Darc's position on the US tariff shock in Cambodia

The United States imposed a 36% tariff on all Cambodian exports, a move that sent shockwaves through Cambodia's economy and its manufacturing sector, which is heavily dependent on exports.

Arnaud Darc, a leading figure in the Cambodian business community, has emerged as a vocal critic of the US approach, arguing that these tariffs are more a means of geopolitical pressure than a desire to ensure fair trade.

Arnaud Darc

He describes the US decision as economic coercion and warns of its profound and lasting consequences for Cambodia and the global trading order.

Mr. Darc argues that these 36% tariffs are not a response to any specific failure on Cambodia's part.

 Rather, they are a blunt instrument used as part of a broader campaign to reshape global supply chains and counter China's influence. He points out that Cambodia has long cooperated with international trade standards, reducing tariffs, inviting US companies, and reforming customs procedures. Yet none of these initiatives has protected Cambodia from these measures.

“Cambodia is not engaged in dialogue, it is being cornered,” said Mr. Darc, pointing out that the US has offered no negotiations, only an ultimatum: open its markets completely or face punitive tariffs.

Mr. Darc's analysis highlights the devastating impact of tariffs on Cambodia's vital garment, footwear, and travel goods industries, which employ hundreds of thousands of people and indirectly support millions more. He predicts:

• A rapid decline in export orders

• Factory closures and mass layoffs

• A potential 40% drop in exports to the US in the first year

• Billions of dollars in losses for the Cambodian economy

He warns that these tariffs will wipe out Cambodia's cost and compliance advantages overnight, making its products uncompetitive in the US market. He stresses that the consequences will not be evenly distributed: while Cambodia will suffer, its regional competitors such as Vietnam, Bangladesh, and Indonesia, which benefit from lower tariffs, will absorb its lost market share.

Mr. Darc sees the real motivation behind the US decision clearly. He argues that Cambodia is collateral damage in a broader power struggle between Washington and Beijing. The US is seeking to disrupt supply chains that could facilitate China's indirect access to its market, and Cambodia, with its growing economic ties to China, finds itself caught in the crossfire.

“This is not a partnership. It is submission through economic threat,” writes Mr. Darc, who warns that Cambodia's experience is a lesson for other small economies operating in a world where multilateral rules are giving way to brute influence.

Mr. Darc criticizes the US administration's tactics: tariffs, time pressure, and asymmetrical ultimatums. Unlike Vietnam, which secured a partial reprieve through negotiations, Cambodia has no room for maneuver.

The US message is clear: comply fully or pay the price, with no room for dialogue or mutual assessment.

He describes the situation as a manufactured crisis, fueled by rhetoric about trade deficits and transshipment concerns that, in Cambodia's case, reflect neither reality nor the country's intentions.

In the face of this crisis, Mr. Darc urges Cambodia to respond with clarity and determination:

• Seek technical negotiations, request extensions and push for balanced economic assessments.

• Strengthen ties with ASEAN, the EU, India and countries in the South to reduce excessive dependence on a single market.

• Work with other affected countries to present a united front, as many of them are silently facing similar pressures.

Arnaud Darc also warns that giving in to US demands without securing acceptable terms for Cambodia would set a dangerous precedent, signaling vulnerability to future economic pressure.

He is skeptical of the US argument that these tariffs will boost employment in the US manufacturing sector. He notes that the likely outcome is not a revival of the US textile industry, but simply a shift in sourcing to other low-cost countries. US consumers, meanwhile, will face higher prices without any job creation in their country.

Arnaud Darc's position is both critical and cautionary. He sees US tariffs as symptomatic of a broader breakdown of the multilateral trading system, where might increasingly trumps right.

For Cambodia and similar economies, the lesson is clear: economic sovereignty must be defended and resilience strengthened through diversification, regional cooperation, and strategic investment.

“You can reach out to shake hands, but the other hand is already holding the knife,” concludes Mr. Darc, summarizing his view that Cambodia must not confuse diplomatic etiquette with genuine partnership.

Arnaud Darc's position on the US tariff shock is therefore unambiguous: Cambodia is the victim of a geopolitical struggle it did not choose and is facing economic coercion disguised as fair trade. He calls on Cambodia to stand firm, diversify its partnerships and defend its autonomy in a world where the rules of trade are being rewritten by the powerful.