The United States imposes 19% tariff on Cambodian goods

The United States imposes 19% tariff on Cambodian goods

The United States has imposed a 19% tariff on Cambodian goods, effective from August 1, 2025. The decision comes as part of a broader trade agreement between the U.S. and Cambodia, following a ceasefire in the region and renewed trade negotiations [1].

Commerce Secretary Howard Lutnick announced the trade deal in an interview with Sean Hannity on Fox News, stating, "We made trade deals with Cambodia and Thailand" [1]. The tariff rate is a significant reduction from the initial 36% rate, which was set to apply to both countries' goods entering the U.S. market. This move aims to provide relief to Cambodia's trade-reliant economy, which faces pressure from high tariffs and a challenging economic environment [1].

The tariff reduction is part of a broader strategy by the U.S. to secure favorable trade agreements in the region. Thailand and Cambodia had been under pressure to reach a deal due to their dependence on the U.S. as their largest export market. Neighboring countries like Indonesia, the Philippines, and Vietnam had secured lower tariff rates, which put additional pressure on Cambodia and Thailand to negotiate [1].

Thailand, which also reached a trade deal, has expressed optimism about the future of its trade relationship with the U.S. Thailand's acting leader, Phumtham Wechayachai, stated that he expected a "very good" trade deal with the U.S. [1]. Similarly, Cambodia's Deputy Prime Minister Sun Chanthol, who led the trade negotiations, expressed hope that the new tariff rate would help mitigate the economic impact of the tariffs.

The tariff reduction is expected to have a positive impact on Cambodia's economy, which has been under pressure due to high household debt and sluggish domestic consumption. The initial tariff of 36% was estimated to shave at least one percentage point off Cambodia's gross domestic product this year [1].

In conclusion, the U.S. has imposed a 19% tariff on Cambodian goods, providing relief to the country's trade-dependent economy. This decision is part of a broader trade agreement between the U.S. and Cambodia, which aims to secure favorable trade terms in the region.

References:
[1] https://www.bloomberg.com/news/articles/2025-07-31/us-made-trade-deals-with-thailand-cambodia-lutnick-says