Phnom Penh, Cambodia – Cambodia is actively pursuing further reductions in the 19 percent retaliatory tax imposed by the United States, a measure that has been in effect for the past five months. Despite the current tariff, Cambodian officials are committed to ongoing negotiations aimed at securing even lower rates for several of the nation’s key export sectors.
Mr. Sun Chanthol, the Deputy Prime Minister and First Vice President of the Council for the Development of Cambodia (CDC), recently affirmed Cambodia’s proactive stance. While acknowledging that the existing 19 percent retaliatory tariff from the United States still allows Cambodia to maintain a competitive edge against neighboring nations, he underscored the government’s unwavering commitment to seeking additional reductions, particularly for its crucial priority sectors.
Speaking at the closing ceremony of the Ministry of Commerce’s 2025 work summary meeting and 2026 work plan on the afternoon of January 9, Deputy Prime Minister Chanthol explicitly stated, ‘We will continue to negotiate with the United States to secure additional reductions in retaliatory taxes, specifically targeting products within our vital garment, footwear, and travel goods industries.’
Mr. Chanthol articulated a strong sense of optimism regarding the potential for exports in these specific sectors—garments, footwear, and travel goods—to eventually face tariffs significantly lower than the current 19 percent, potentially even reaching zero. He elaborated on this outlook, highlighting that the United States is not a primary producer of goods in these categories. ‘We are continuing our discussions with the American side, advocating for a further decrease in the retaliatory tax from 19 percent,’ Mr. Chanthol explained. ‘Achieving a zero percent tariff would be ideal, especially given that the United States does not have significant manufacturing capabilities in these particular industries. We do not believe the United States produces bags or cuts clothes on a large scale. Therefore, for these sectors, we are earnestly urging and requesting the United States to re-evaluate and consider reducing this retaliatory tax rate.’
This ongoing dialogue follows a previous significant adjustment in trade relations. On August 1, 2025, Cambodia unilaterally implemented a zero percent tariff on goods originating from and imported from the United States. Concurrently, the global superpower had previously lowered its retaliatory tariff on Cambodian products from an initial 49 percent to the current 19 percent. As of January 9, these revised tariff structures between the two nations have been in effect for approximately five months.
The Ministry of Commerce reported robust trade figures for the full year 2025 between Cambodia and the United States. Total bilateral trade volume reached an impressive $13.14 billion, marking a substantial 29.24 percent increase compared to 2024. Cambodia’s exports to the U.S. market constituted the majority of this trade, totaling $12.73 billion, an increase of 28.48 percent. Conversely, Cambodia’s imports from the U.S. exceeded $417 million, showing a notable surge of 57.83 percent. The primary goods exported by Cambodia to the U.S. market include garments, various travel accessories such as suitcases and bags, bicycles, components, and other consumer items. In return, Cambodia imports a range of products from the U.S., including vehicles, machinery, jewelry, cosmetics, electrical and electronic equipment, and other essential goods.
