Cambodia Rallies Private Sector as US Tariff Deadline Looms

[geovalin]

 

Cambodia’s private sector is mobilising in force after Washington confirmed a new 36% tariff on Cambodian exports to the US, due to take effect on 1 August. Business leaders are now scrambling to assess the fallout and propose countermeasures aimed at protecting the country's export economy and jobs.

 

In response, a high-level forum was convened Thursday under the Government-Private Sector Forum (G-PSF), chaired by Kith Meng, President of the Cambodian Chamber of Commerce. Sixteen private sector working group co-chairs, along with representatives from trade bodies and international chambers, gathered to address the crisis.

 

The meeting focused on how the tariff could dent competitiveness across key industries, particularly garments, footwear, travel goods, and agro-processing — sectors heavily reliant on the US market. Delegates also warned of knock-on effects in logistics, manufacturing, and energy-related sectors.

 

“This is a serious competitiveness shock,” one participant said. “We’re not just talking about numbers — it’s jobs, factories, livelihoods on the line.”

 

The private sector is now preparing a unified policy package for the government, proposing emergency and medium-term steps to cushion the blow. These include export diversification strategies, investor confidence-building measures, and potential support for affected industries.

 

Lim Heng, Vice-President of the Cambodia Chamber of Commerce, urged caution. “We still don’t know the full impact. When the US imposed a 49% tariff in the past, it took time to understand the consequences. Let’s not panic.”

 

He noted that Cambodia is not wholly reliant on the US market, with trade channels still open through agreements like the EU’s Everything But Arms (EBA), RCEP, and FTAs with China, Korea, and the UAE. “If necessary, we can pivot exports to those markets,” he added.

 

The 36% tariff, reduced from an earlier 49%, follows weeks of negotiations between Phnom Penh and Washington. Officials say it reflects the US's more measured approach towards developing country trade partners.

 

Still, with just weeks to go, Cambodia faces a race against time to shield its economy from disruption — and to prove it can adapt under pressure.

 

-2025-07-14

[Srikcir]

On 7/14/2025 at 8:36 AM, geovalin said:

“If necessary, we can pivot exports to those markets,”

Quit worrying, Trump does not respect any trade negotiations unless he personally benefits and dominates national sovereignty. 

Pivot as many nations under escalating US tariff interruptions are doing and seek economic stability versus economic "terrorism."