Garment workers at a factory in Phnom Penh. Apparel remains one of Cambodia's top export products to the US. STPM
Business leaders have reportedly expressed optimism that Cambodia will obtain a favourable outcome during its tariff negotiations with the US, following US President Donald Trump’s announcement that his so-called “reciprocal tariffs” will be suspended for 90 days to allow for them to be negotiated. At 49%, the tariffs initially proposed on Cambodian imports were the highest in the ASEAN region.
On April 3, the Trump administration announced it would raise tariffs on imports from Cambodia to 49%, in response to what it described as a significant trade imbalance in goods between the two countries. The implementation of this tariff was initially scheduled to begin on April 9.
However, when that date arrived, the US government suspended their implementation, noting that it would apply a 10% temporary tariff on all countries that had requested negotiations, including Cambodia.
On April 10, the Ministry of Commerce released a statement reaffirming that the Royal Government of Cambodia, through the ministry and other government institutions, has been closely monitoring developments and has prepared mechanisms to find suitable solutions through negotiations with the US.
Prime Minister Hun Manet and commerce minister Cham Nimul both expressed their willingness to negotiate in official letters on April 4. The prime minister also offered to reduce tariffs from 35% to 5% on 19 categories of US imports.
The government has established an inter-ministerial task force, led by Sun Chanthol, first-vice president of the Council for the Development of Cambodia (CDC), to oversee the negotiations.
On April 10, the government also established a task force to coordinate bilateral trade and investment relations between Cambodia and the US, to be chaired by Chanthol.
It explained that the task force is responsible for coordinating, negotiating and enhancing bilateral trade relations, promoting US investment in Cambodia, and liaising with related ministries, Cambodia's embassy in the US and the American Chamber of Commerce in Cambodia (AmCham).
Lor Vichet, vice-president of the Cambodia Chinese Commerce Association (CCCA), told The Post on April 10 that the US government’s move to impose high tariffs on imports apparently aimed to reduce trade deficits, encourage companies to relocate production to the US, create jobs for Americans and gauge the geopolitical stance of other countries toward the US.
He explained that the US has long faced international trade imbalances, and its tariff policies aim to boost exports of US-made products. Countries that lower tariffs on US products are more likely to see reciprocal reductions.
He noted that Cambodia, as a developing country, is making strong efforts to resolve these issues through negotiation and has shown a willingness to lower tariffs on US goods.
Looking forward, Vichet suggested that Cambodia should consider establishing a bilateral free trade agreement (FTA) with the US, as it would make trade negotiations more straightforward compared to trilateral or multilateral mechanisms.
“I believe the Cambodian government should push for a bilateral FTA with the US rather than relying on multilateral negotiations,” he said.
“I’m confident that upcoming negotiations will yield highly positive results,” he continued.
He added that the US tariff increases on imports from multiple countries could also be used to assess the global response to US international cooperation, especially as several ASEAN countries are now considering joining the BRICS bloc, which includes Brazil, Russia, India, China and South Africa.
According to the General Department of Customs and Excise (GDCE), bilateral trade between Cambodia and the US reached $10.18 billion in 2024, up 11.2% compared to 2023. Of that, Cambodian exports were valued at $9.92 billion, an increase of 11.4%, while imports amounted to just $264.15 million, up 2.7%.
The US remains Cambodia’s largest export market, accounting for 37.9% of total exports, followed by Vietnam (13.8%), China (6.7%), and Japan (5.4%). The majority of Cambodian exports to the U.S. are garments, travel goods, and footwear.
