Cambodia Faces Economic Jolt as Trump Slaps 49% Tariff on Imports

AmCham

Cambodia has been hit with a steep 49% US tariff on its exports, prompting concern in Phnom Penh and a scramble to shield the economy from what many are calling a serious threat to competitiveness.

The tariff, announced by former US President Donald Trump in a sweeping crackdown on trade imbalances, makes Cambodia the hardest-hit country in ASEAN. Trump, speaking at a press conference, singled out Cambodia for having “made a fortune” from US trade and pledged to rein in what he called unfair gains.

The Cambodian government is now weighing “comprehensive measures” to keep its economy competitive, said Meas Soksensan, spokesperson for the Ministry of Economy and Finance. “We will implement specific steps to support growth and protect jobs,” he told Khmer Times.

The American Chamber of Commerce in Cambodia (AmCham) warned that the tariff could have an immediate and damaging effect on the country’s key export industries, particularly garments and footwear. AmCham president Casey Barnett urged swift talks with Washington, saying “the only way to avoid serious long-term harm is through immediate diplomatic engagement.”

Exports to the US are vital to Cambodia’s economy, making up nearly $10 billion in 2024 alone—an 11% rise from the year before. Yet the country's efforts to diversify exports over three decades have had limited success, leaving it exposed to trade shocks.

Still, some are urging caution. Lim Heng of the Cambodia Chamber of Commerce said assessments should wait until the tariff is actually in force, noting that previous fears—such as the partial withdrawal of EU trade preferences—did not lead to the worst-case scenarios.

Others warn the tariff may do more harm to the US in the long run. Chheng Kimlong of the Asian Vision Institute called it “a short-term win” for Washington that could damage its reputation as a leader in free trade and invite retaliation from other nations.

With the tariff set to take effect on 9 April, Cambodia has a narrow window to negotiate. Analysts say the government may offer reciprocal trade concessions, or even grant American businesses greater access, in hopes of defusing the crisis.

As tensions rise, some see the move as part of a wider geopolitical struggle. “When elephants fight, it is the grass that suffers,” said Youk Chhang of DC-Cam, pointing to Cambodia’s growing role in China-US trade rivalry.

-2025-04-05