Trump Tariffs Threaten Cambodia’s Jewellery Export Boom

Cambodia’s flourishing jewellery industry faces a sharp challenge as new U.S. tariffs under President Donald Trump threaten its competitiveness in the American market. Despite recent growth and rising global interest, a 19% import duty now levied on Cambodian jewellery risks undercutting the sector’s momentum.

The tariff, reduced from a previous 36% but still steep compared to regional rivals, was part of Trump’s broader push for “reciprocal trade” and came into effect on 1 August. While countries like Vietnam and the Philippines face similar rates, others enjoy lower or zero tariffs, giving them a price edge in the U.S. market.

Chhay Sinat, President of the Cambodian Jewelers Federation, told Khmer Times that the tariff “still poses a challenge” by making Cambodian products less competitive. Yet he remains optimistic, citing Cambodia’s strengths in craftsmanship, low labour costs, and heritage-inspired design.

The sector has seen impressive growth, with trade in jewellery and precious stones surpassing $244 million in the first four months of 2025. Foreign brands are investing locally, and Cambodian motifs—often drawn from Angkorian art—are gaining traction among international buyers.

Tourism also plays a vital role. Visitors from Europe, North America, and East Asia are drawn to Cambodia’s unique jewellery, often purchasing pieces as cultural keepsakes. Events like the International Jewelry Exhibition have helped showcase the country’s artisanal talent.

However, rising gold prices have complicated matters. While they’ve boosted interest in gold as a store of value, they’ve also driven up production costs, dampening demand for solid gold items.

Looking ahead, the industry is betting on a blend of tradition and innovation. Automation may streamline production, but won’t replace the intricate work of Cambodian artisans. Ethical sourcing and sustainable practices, including lab-grown diamonds, are also gaining ground.

Despite the tariff setback, Cambodia’s jewellery sector remains resilient. With strategic promotion and continued investment, it could carve out a niche in the global market—one defined by cultural depth and creative flair.

-2025-08-16