Cambodia Urges Calm as US Tariff Hike Sparks Concern

Penn Sovicheat, Secretary of State at the Ministry of Commerce

Cambodian officials have urged calm following a sharp hike in US tariffs on Cambodian goods, insisting the move is not politically driven and pledging to protect the country’s export sector.

On 3 April, US President Donald Trump announced a new 49% tariff on imports from Cambodia, citing reciprocal measures after Cambodia imposed a 97% rate on American goods. The change, set to take effect on 9 April, has raised fears over its potential impact on Cambodia’s economy, particularly in the garment and manufacturing sectors.

Penn Sovicheat, Secretary of State at the Ministry of Commerce, rejected claims that the tariff hike is politically motivated. “This is not about politics,” he said. “The US has imposed similar tariffs on over 100 countries, including its close allies. This is part of a broader economic strategy, not a targeted response to Cambodia.”

He explained that the Royal Government and the Ministry of Commerce are actively working to assess the impact and prepare countermeasures. “We urge citizens and exporters to remain calm. This is a negotiation, not a sanction,” he said, adding that Cambodia will engage through both bilateral channels and the World Trade Organization.

The tariffs come amid strong trade growth between the two nations. In 2024, Cambodia exported nearly $10 billion in goods to the US, up over 11% from the previous year. The new levy will affect a range of products including garments, travel goods, footwear, tyres, and solar panels.

Labour Minister Heng Sour also addressed concerns, stressing that the impact on workers this year will be minimal. “Most orders were placed before the tariffs were introduced. In fact, many firms risk penalties if they cancel existing contracts,” he explained.

He added that Cambodia’s export diversification, especially towards Europe, has reduced overreliance on the US. “We’re not alone in this — other countries face similar tariffs, and Cambodia’s production costs remain competitive.”

Officials reaffirmed their commitment to supporting exporters and maintaining economic stability, warning against misinformation and speculation. While the full impact of the tariffs will unfold in the coming years, the government remains firm in its position: trade, not politics, is at the heart of this dispute.

-2025-04-04