KT

 

Cambodia’s garment and footwear workers are bracing for economic hardship following a sharp rise in US tariffs, fearing the fallout could cost them their jobs and worsen already fragile working conditions.

 

The 49% tariff increase — announced under the renewed trade policy of former US President Donald Trump — has alarmed unions and labour advocates in the country, where nearly one million workers depend on the export-driven textile industry for their livelihoods.

 

At a recent forum titled “A Unified Voice for Economic Justice”, held by the Workers’ Information Center in Phnom Penh, campaigners warned that the tariff shock threatens to undermine years of economic progress.

 

Sot Sophorng, a researcher with the centre, said the announcement was “shocking and worrying,” and could expose workers to greater exploitation as factories scramble to absorb the financial hit.

 

“Without immediate protection measures, this could push hundreds of thousands of Cambodians into worsening conditions,” he said. “It’s not just about wages — it’s about the entire wellbeing and future of these workers.”

 

Cambodia exported nearly $14 billion in garments, footwear, textiles, and travel goods to international markets in 2024 — a 23% rise from the previous year. The vast majority of these exports head to the United States, making the country’s trade policy a decisive factor in Cambodia’s economic stability.

 

There are currently more than 1,500 factories operating in the country’s garment sector, employing close to a million workers — most of them women from rural areas.

 

Khun Tharo, a programme manager at labour rights group CENTRAL, said the long-term risks to job security are real if trade negotiations with Washington stall.

 

“No country in this sector has yet reached a trade deal with the US,” Tharo posted online. “But Vietnam may soon enjoy better conditions than Cambodia — and that’s a concern.”

 

Minimum wage increases in the sector have failed to keep pace with inflation, and activists warn that workers — especially in informal settings — could become more vulnerable to underpayment and abuse.

 

As the Cambodian government navigates tense trade discussions, many fear that without urgent action, the human cost of this tariff hike will be paid by the country’s most precarious workers.

 

-2025-07-01

 

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