Textile

Noteworthy reduction in Cambodian tariffs on products imported from US

07 Apr '25
2 min read
Noteworthy reduction in Cambodian tariffs on products imported from US
Pic: Shutterstock

Insights

Cambodian Prime Minister Hun Manet last week announced a significant reduction in tariffs on products imported from the United States, immediately reducing tariffs on 19 US product categories from the maximum bound rate of 35 per cent to an applied rate of 5 per cent.

The decision followed President Donald Trump’s move to impose a 49-per cent tariff on Cambodian exports, set to take effect on April 9 this year.

In a formal letter, Manet urged the US government to delay the tariff implementation and begin negotiations without delay.

“In response to your recent announcement on April 2, 2025, imposing a 49-per cent tariff on Cambodian products from April 9, 2025, Cambodia proposes to negotiate with Your Honorable’s administration at the earliest convenient time and wishes to request that your esteemed government consider postponing the above-mentioned tariff implementation,” a domestic media outlet quoted the letter as saying.

Following Manet’s direction to his Commerce Minister Cham Nimul to engage with the office of the US trade representative (USTR) for further discussions on the matter, the latter formally reached out to USTR Jamieson Greer, emphasising Cambodia’s dedication to constructive dialogue and economic cooperation.

She reiterated Cambodia’s commitment to lowering tariffs on US imports and urged Washington to establish a negotiation mechanism.

Additionally, she requested that the US government extend the deadline for the new tariffs to allow for consultations with stakeholders and an assessment of alternative approaches that align with both US economic priorities and Cambodia’s sustainable development goals.

The United States is yet to respond to Cambodia’s request for negotiations.

Expressing concerns over the potential impact of the US tariffs on Cambodia’s export sector, the Textile, Apparel, Footwear and Travel Goods Association in Cambodia (TAFTAC) urged all its members, workers and the public to maintain calm as the actual impacts are still being analysed.

Fibre2Fashion News Desk (DS)