United States-Cambodia agreement sees purchase of Boeing 737 Max aircraft at lower tariff rates
In a significant move, Cambodia's national carrier, Air Cambodia, is currently negotiating to purchase up to 20 Boeing 737 MAX jets. This decision comes as a result of the recent US-Cambodia trade tariff agreement, signed in 2025 [1][4].
The trade deal aims to modernize Air Cambodia's fleet, increase capacity, and expand its route network, directly linked to improvements in US-Cambodia trade relations [4]. This development follows a broader US trade policy context where smaller nations like Cambodia face tariffs on US goods, and offsetting this by buying high-value American products such as Boeing aircraft benefits trade balances and diplomacy [2].
Cambodia's move to lift tariffs on US goods appears to have encouraged this significant aircraft procurement from Boeing, continuing a pattern seen in other countries using aircraft orders as part of trade negotiations [2]. However, no specifics have been released yet about delivery schedules or financing.
The 737 MAX production is currently stable, with Boeing targeting around 400 deliveries of this model in 2025 [3]. However, some variants of the 737 MAX are still undergoing certification delays, which could affect delivery timing [3].
The trade deal also aims to address non-tariff barriers (NTBs) and other obstacles, as emphasised by the US during trade discussions [2]. This is part of a broader effort to improve trade relations between the two countries.
Meanwhile, the US trade deal also aims to address issues related to non-tariff barriers (NTBs) and other obstacles [2]. This is part of a broader effort to improve trade relations between the two countries.
In a separate development, the Thai Disaster Agency is monitoring four flood-hit provinces and preparing for the next weather system, while the Royal Thai Air Force will commission 8 AT-6 aircraft for border operations and air support missions [5].
Elsewhere, a mental health crisis response is needed in border regions between Thailand and Cambodia, with 267 border residents at suicide risk [6].
References:
[1] Bloomberg. (2025). Boeing's Deal with Cambodia May Upset China's COMAC. Retrieved from https://www.bloomberg.com/news/articles/2025-09-01/boeing-s-deal-with-cambodia-may-upset-china-s-comac
[2] Reuters. (2025). Cambodia Agrees to Scrap Tariffs on US Goods in Trade Deal. Retrieved from https://www.reuters.com/article/us-cambodia-usa-trade/cambodia-agrees-to-scrap-tariffs-on-us-goods-in-trade-deal-idUSKBN25M205
[3] AirlineGeeks. (2025). Boeing 737 MAX Production Stable, Targeting 400 Deliveries in 2025. Retrieved from https://www.airlinegeeks.com/2025/09/01/boeing-737-max-production-stable-targeting-400-deliveries-in-2025/
[4] AirlineRatings. (2025). Air Cambodia to Buy Up to 20 Boeing 737 MAX Jets. Retrieved from https://www.airlineratings.com/news/air-cambodia-to-buy-up-to-20-boeing-737-max-jets/
[5] Bangkok Post. (2025). Thai Disaster Agency Monitors Four Flood-Hit Provinces. Retrieved from https://www.bangkokpost.com/thailand/general/2035618/thai-disaster-agency-monitors-four-flood-hit-provinces
[6] CNN. (2025). Mental Health Crisis Response Needed in Thailand-Cambodia Border Region. Retrieved from https://edition.cnn.com/2025/09/01/asia/thailand-cambodia-border-mental-health-crisis-intl/index.html
- The US-Cambodia trade tariff agreement, signed in 2025, aims to modernize Air Cambodia's fleet and expand its route network, which is directly linked to improvements in US-Cambodia trade relations.
- The trade deal also aims to address non-tariff barriers and other obstacles, as emphasized by the US during trade discussions, which is part of a broader effort to improve trade relations between the two countries.
- Cambodia's move to lift tariffs on US goods appears to have encouraged the significant aircraft procurement from Boeing, continuing a pattern seen in other countries using aircraft orders as part of trade negotiations.
- The 737 MAX production is currently stable, with Boeing targeting around 400 deliveries of this model in 2025, but some variants of the 737 MAX are still undergoing certification delays, which could affect delivery timing.
- Meanwhile, a mental health crisis response is needed in border regions between Thailand and Cambodia, with 267 border residents at suicide risk, while the Royal Thai Air Force will commission 8 AT-6 aircraft for border operations and air support missions.
