In a major breakthrough for Cambodia’s export sector, U.S. President Donald Trump approved a significant reduction in import tariffs on Cambodian goods, slashing the rate from 36% to just 19%.
The new tariff rate will take effect on August 1, 2025, and is part of Washington’s latest update to its international customs duty schedule.
The tariff reduction also applies to Thailand, which similarly saw its duty lowered from 36% to 19%. Cambodia and Thailand now join a group of Asian nations — including Indonesia, Malaysia, the Philippines, and Pakistan — that will face a uniform 19% rate under the updated U.S. trade regime.
The United States is one of Cambodia’s most important trading partners. In 2024, Cambodian exports to the U.S. were valued at more than $8 billion, with the garment and textile industry accounting for over 70% of the total.
The 36% tariff had previously sparked concern among factory owners and trade unions, who feared job losses and factory closures if the high rate remained in place.
Source: Khmer Times
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