U.S. Slashes Tariffs on Cambodian Goods to 19% in Major Trade Shift

[geovalin]

 

In a move set to boost Cambodia’s export economy, U.S. President Donald Trump has approved a sweeping reduction in import tariffs on Cambodian goods — cutting the rate from 36% down to 19%, effective 1 August.

 

The decision, announced by both U.S. and Cambodian officials, marks a significant policy shift and comes amid renewed efforts to stabilise Cambodia–U.S. trade ties. The tariff cut also applies to Thailand, aligning both nations with a broader group of Asian countries now subject to a uniform 19% import duty under the updated U.S. customs regime.

 

Cambodian Prime Minister Hun Manet welcomed the move this morning, calling it “good news for the people and economy of Cambodia” and crediting recent direct talks with President Trump for the breakthrough. In a post on his official social media account, he revealed that the tariff reduction followed phone conversations held on 26 and 28 July, in which he appealed for U.S. understanding of Cambodia’s development challenges.

 

Hun Manet also praised the U.S. President’s support in facilitating a ceasefire between Cambodian and Thai military forces, adding that Trump had shown “great interest in Cambodia’s bitter history” and a willingness to support the country’s recovery and growth.

 

The United States remains one of Cambodia’s top export markets, with total shipments exceeding $8 billion in 2024. The garment and textile sector, accounting for more than 70% of those exports, had been particularly strained by the 36% tariff — itself a reduction from an earlier 49% rate.

 

Industry leaders and trade unions had voiced growing concern that high tariffs could trigger factory closures and job losses. The new 19% rate is expected to relieve pressure on manufacturers and shore up investor confidence.

 

Deputy Prime Minister Sun Chanthol, who led the negotiation team, was also commended by Hun Manet for securing what he called “excellent results”.

 

The tariff cut is seen as both an economic and diplomatic win for Phnom Penh. But while the gesture may ease trade tensions, questions remain over how long-lasting the benefits will be — and whether broader reforms will follow.

 

-2025-08-01