Despite imposed tariffs from the United States, Cambodia has adapted by restructuring its supply chains, diversifying markets, and strengthening its comparative advantages through innovation and industrial development.
The recent U.S. decision to reduce tariffs on Cambodian exports from 36% to 19% has renewed interest in bilateral trade. While the 19% rate remains a challenge, it is comparable to tariffs imposed on other countries in the region, allowing Cambodia to maintain its competitive edge. Cambodia’s young workforce, investment-friendly environment, and steady economic growth continue to make it attractive for labor-intensive industries, where even small differences in labor costs can significantly impact export pricing and investment decisions.
In a recent meeting between Deputy Prime Minister (DPM) Sun Chanthol and a U.S. Congressional delegation led by Congresswoman Beth Van Duyne of Texas, the DPM highlighted its investment potential and reaffirmed its commitment to strengthening bilateral and multilateral cooperation. The government emphasized its stable macroeconomic environment, improving infrastructure, and streamlined investment procedures—including simplified registration, practical incentives, and public-private engagement through platforms such as the Government–Private Sector Forum. Cambodia urged U.S. investors to capitalize on emerging trade advantages and a rapidly improving business climate.
Despite changes in tariff policies, Cambodia–U.S. bilateral trade increased by over 30% in the first seven months of 2025 compared to $154 million during the same period in 2024. Cambodia’s total exports to global markets also grew by 27%, and the surge in newly approved investment projects reflects strong investor confidence and timely opportunities in the Cambodian market.
