US tariffs hit Cambodia over forced labour

The United States has imposed fresh tariffs on dozens of trading partners, with Cambodia among those targeted, in a move Washington says is designed to combat forced labour in global supply chains.

Announced late on Thursday by US Trade Representative Jamieson Greer, the measures replace a temporary 10% global duty that expired earlier in the day. Under Section 301 of the Trade Act of 1974, countries judged to have failed to adopt or enforce bans on goods produced with forced labour will now face tariffs of either 10% or 12.5%.

Cambodia falls into the group assigned a 10% rate, alongside nations such as Bangladesh, India and the United Kingdom. Others, including China, Thailand and South Korea, have been hit with the higher 12.5% duty. The US says the distinction reflects whether governments have at least committed to prohibiting imports linked to forced labour.

Greer said the decision followed extensive investigations, public hearings and thousands of submissions. “Decades of moral suasion have not eradicated forced labour from global supply chains,” he declared. “Today’s action will begin to correct what is both a human rights abuse and a distortive trade practice.”

For Cambodia, the tariffs come at a sensitive moment. The country relies heavily on exports of garments, footwear and agricultural products, much of which is destined for the US market. Analysts warn that even a 10% duty could erode competitiveness, particularly against regional rivals not subject to the same rate.

The US has long expressed concern about labour standards in Cambodia’s manufacturing sector, where reports of poor working conditions and weak enforcement of labour laws have persisted. While Phnom Penh has taken steps to improve oversight, Washington argues that enforcement remains patchy and insufficient.

The new tariffs are sweeping in scope, covering 60 economies and 99% of US imports, though exemptions apply to certain raw materials and essential goods. The move is also politically significant, marking President Donald Trump’s determination to revive his tariff agenda after earlier measures were struck down by the Supreme Court.

Cambodia’s government has yet to issue a formal response, but officials are expected to weigh the potential impact on exports and jobs. Economists say the country may need to accelerate reforms to reassure trading partners and avoid deeper penalties.

For now, the message from Washington is clear: forced labour in supply chains will carry a financial cost, and Cambodia, along with many others, is under pressure to prove it can meet international standards.

-2026-07-24