Cambodian solar panel factories

 

Cambodia’s booming non-garment export sector has taken a sharp hit this year, as solar panel shipments collapsed under the weight of punitive US tariffs—casting a shadow over otherwise strong industrial growth.

 

Between January and September 2025, solar panel exports plunged from $828 million to just $6 million, a near-total wipeout attributed to a staggering 3,500 percent tariff imposed by the United States. The fallout has skewed the country’s export figures, making overall non-garment growth appear flat despite impressive gains in other sectors.

 

Electronic goods, bicycles, and vehicle parts all posted robust increases. Electric cable and wire exports surged 66 percent to $423 million, while bicycle-related exports jumped 43 and 97 percent respectively. Car tyre exports soared to $971 million, up 58 percent year-on-year.

 

The Ministry of Commerce highlighted that most of these goods are produced in special economic zones and shipped to key markets including the EU, US, Japan, Korea, and Thailand. Penn Sovicheat, Secretary of State, said the data reflects Cambodia’s successful push to diversify its manufacturing base. “The increasing prominence of other sectors is proof of our economic transformation,” he told Khmer Times.

 

Despite the solar slump, total non-garment exports edged up to $2.77 billion, slightly above last year’s $2.72 billion. Broader exports reached $22.39 billion, up 12.9 percent, with garments still dominating the figures.

 

Meanwhile, Cambodia approved 546 new investment projects worth $7.8 billion in the first half of 2025, with nearly 70 percent funnelled into manufacturing. The Council for the Development of Cambodia said the investments span garments, electronics, infrastructure, and tourism—reinforcing the Kingdom’s strategy to attract high-value industries.

 

For foreign investors and trade watchers, the message is clear: Cambodia’s industrial ambitions remain intact, but geopolitical headwinds—like the US solar tariffs—can still scorch even the sunniest sectors.

 

 

-2025-10-29

I think you could just make a general statement and say Trump tariffs (tax hikes) have scorched economies all over the world, and the scorching will start very soon in America if it hasn't already.