In a strategic move to strengthen bilateral trade relations, Cambodia has announced an immediate reduction of tariffs on 19 product categories from the United States, bringing rates down to 5%. This decision comes as Cambodia faces a steep 49% tariff from the US, the highest among Southeast Asian nations.
Cambodia’s Tariff Reduction Proposal
The proposal, communicated through a letter dated April 4, 2025, from Cambodia’s Minister of Commerce CHAM Nimul to U.S. Trade Representative Ambassador Jamieson Greer, affects a wide range of products, including:
No. |
Category |
Description |
Current Tariffs |
Immediately Tariff Reduction |
|---|---|---|---|---|
01 |
020120 |
Meat of bovine animals, fresh or chilled: Other cuts with bone in |
15% |
5% |
02 |
020130 |
Meat of bovine animals, fresh or chilled: Boneless |
15% |
5% |
03 |
020220 |
Meat of bovine animals, frozen: Other cuts with bone in |
15% |
5% |
04 |
020230 |
Meat of bovine animals, frozen: Boneless |
15% |
5% |
05 |
020322 |
Meat of swine, fresh, chilled or frozen: Frozen: Hams, shoulders and cuts thereof, with bone in |
15% |
5% |
06 |
020329 |
Meat of swine, fresh, chilled or frozen: Frozen: Other |
15% |
5% |
07 |
020714 |
Meat and edible offal, of the poultry of heading 0105, fresh, chilled or frozen: Of fowls of the species Gallus domesticus: Cuts and offal, frozen |
15% |
5% |
08 |
020727 |
Meat and edible offal, of the poultry of heading 0105, fresh, chilled or frozen: Of turkeys: Cuts and offal, frozen |
15% |
5% |
09 |
040410 |
Whey, whether or not concentrated or containing added sugar or other sweetening matter; products consisting of natural milk constituents |
15% |
5% |
10 |
080211 |
Other nuts, fresh or dried, whether or not shelled or peeled: Almonds: In shell |
7% |
5% |
11 |
080212 |
Other nuts, fresh or dried, whether or not shelled or peeled: Almonds: Shelled |
7% |
5% |
12 |
100590 |
Maize (corn): Other |
7% |
5% |
13 |
120190 |
Soya beans, whether or not broken: Other |
15% |
5% |
14 |
170211 |
Other sugars, including chemically pure lactose, maltose, glucose and fructose, in solid form; sugar syrups |
7% |
5% |
15 |
200410 |
Other vegetables prepared or preserved otherwise than by vinegar or acetic acid, frozen, other than products of heading 2006; Potatoes |
15% |
5% |
16 |
200811 |
Fruit, nuts and other edible parts of plants, otherwise prepared or preserved |
15% |
5% |
17 |
220830 |
Undenatured ethyl alcohol of an alcoholic strength by volume of less than 80 % vol; spirits, liqueurs and other spirituous beverages: Whiskies |
35% |
5% |
18 |
870431 |
Motor vehicles for the transport of goods: Other, with spark-ignition internal combustion piston engine |
15% |
5% |
19 |
871150 |
Motorcycles (including mopeds) and cycles fitted with an auxiliary motor |
15% |
5% |
Context of US-Cambodia Trade Relations
The timing of this move is particularly significant given the current trade climate. The United States remains Cambodia’s largest single-country export destination, accounting for approximately 40% of Cambodia’s total exports. In 2024, the trade relationship showed significant growth:
- Total trade volume reached $13 billion
- U.S. goods exports to Cambodia: $321.6 million (4.9% increase from 2023)
- U.S. goods imports from Cambodia: $12.7 billion (9.3% increase).
US Tariffs on Southeast Asian Countries
The tariff reduction comes amid challenging circumstances as the United States has implemented substantial tariffs on Southeast Asian nations:
- Cambodia: 49%
- Laos: 48%
- Vietnam: 46%
- Myanmar: 44%.
These tariffs are part of a broader strategy by the Trump administration to address trade deficits with approximately 90 countries. The measures are expected to particularly impact Cambodia’s crucial garment and footwear industries, which are significant contributors to the nation’s economy.
