"US Lowers Tariff to 19% on Cambodian Goods, Gains Duty-Free Access; Govt Says Competitiveness Restored", 1 August 2025

The United States has announced a new trade deal imposing a 19% tariff on Cambodian exports, while American goods can now enter Cambodia tariff-free. Cambodian officials said the new rate remains favorable to existing factories, and will be able to attract new investment, and support future expansion.

… Within ASEAN, Cambodia’s new rate is relatively moderate. Singapore faces a 10% tariff, while Thailand, the Philippines, Malaysia, and Indonesia have been imposed with a 19% tax, respectively. Vietnam’s rate is 20%, Brunei (25%), and Laos and Myanmar are subject to the highest rate in the region at 40%.

Chanthol added that compared to neighboring countries, the tariff will allow Cambodia to compete with neighboring countries.

“We will be able to maintain or increase factories in Cambodia and attract investors to our country, which will benefit our nation,” he said.

“It will create jobs for our people, so we ask Cambodian citizens who have migrated to work abroad to come back because we can create tens of thousands of jobs.”…

Chanthol explained that to attain a 19% tariff rate from the U.S., Cambodia agreed to impose zero tariffs on US goods.

… Stephen Higgins, managing partner of Phnom Penh-based Mekong Strategic Capital, said that the 19% tariff is unlikely to push U.S. importers to shift away from Cambodian products, as the rate is similar to or even lower than those faced by Cambodia’s key competitors.

He noted that while the tariff may raise consumer prices in the U.S. by around 5% over the next one to two years, much of the cost will likely be absorbed along the supply chain in the short term…

… Kong Malis, a garment factory worker in Phnom Penh, said that the reduction in tariff is good news for factory workers.

“I think we can accept this number and the factories will continue to operate in Cambodia and have more workers. Cambodian people will be happy,” she said…