As of Saturday, April 19, 2025, the tariff situation for Cambodia is influenced by the broader trade policies of the United States:
Current U.S. Tariffs on Cambodia:
Baseline Tariff: Cambodia is subject to the 10% baseline tariff on imports to the United States, which went into effect on April 5, 2025, for most countries.
"Reciprocal Tariff": A 49% reciprocal tariff was announced for Cambodia, scheduled to take effect on April 9, 2025.
90-Day Pause: However, this 49% reciprocal tariff for Cambodia has been paused until July 9, 2025. During this period, imports from Cambodia are subject to the 10% baseline tariff.
Generalized System of Preferences (GSP):
Cambodia was previously a beneficiary of the U.S. Generalized System of Preferences (GSP) program, which provided duty-free treatment for certain goods from developing countries.
The GSP program expired on December 31, 2020, and has not been reauthorized by the U.S. Congress. This means that Cambodian goods that previously entered the U.S. duty-free under GSP are now subject to Most Favored Nation (MFN) tariff rates, which are the normal, non-discriminatory tariffs applied to most U.S. trading partners.
The expiration of GSP has affected Cambodia's exports, particularly in sectors like travel goods.
Cambodia-U.S. Trade Relationship:
The United States is a significant export market for Cambodia. In 2024, U.S. goods imports from Cambodia totaled $12.7 billion.
Garments, footwear, and travel goods are key Cambodian exports to the U.S.
There is a U.S.-Cambodia Trade and Investment Framework Agreement (TIFA) established in 2006, providing a platform for addressing bilateral trade and investment issues.
Recent Developments and Reactions:
Cambodian experts have criticized the U.S.'s reciprocal tariffs as a "lose-lose game."
The Cambodian government has stated its willingness to negotiate with the U.S. regarding the tariffs and has offered to reduce tariffs on certain U.S. goods entering Cambodia.
Cambodia is seeking to diversify its export markets and is looking towards China for potential financial support amidst the U.S. tariff pressures.
In summary, while Cambodia faced a scheduled 49% reciprocal tariff, this has been paused until July 9, 2025, and the current tariff rate is the 10% baseline. The expiration of the U.S. GSP program continues to impact Cambodia's trade with the U.S.