Cambodia to Benefit from Zero Tariffs on Textile Exports to US

Cambodia is among four countries that will benefit from zero tariff rates from the United States for textile and garment exports, provided specific conditions are met. These countries include Cambodia, Bangladesh, Malaysia, and Indonesia. This was announced by Deputy Prime Minister Sun Chanthol, First Vice Chairman of the Council for the Development of Cambodia (CDC), during a press conference on July 27, 2026. The conference addressed new tariff rates for imports from Cambodia to the United States, following an investigation into compliance with Section 301 of the U.S. Trade Act. Deputy Prime Minister Sun Chanthol clarified that the new tariff rate imposed by the U.S. on Cambodia will be 10% plus the MFN (Most Favored Nation) rate, not an additional 10% on top of the existing 19%. He explained that this MFN tariff is approved by the U.S. Congress and is applicable to all countries. Furthermore, the U.S. is expected to announce new tariffs related to Excess Capacity for 16 countries, including Cambodia, Vietnam, Thailand, Malaysia, Indonesia, China, and the European Union, within the next two to three months. However, Deputy Prime Minister Sun Chanthol stated that discussions with representatives from the U.S. Chamber of Commerce indicate that Cambodia will not lose its competitiveness. He emphasized that the trade agreement signed by former President Donald Trump and Prime Minister Hun Manet will continue to be recognized. Even with new regulations, the total tariff, including those for Excess Capacity and Forced Labor, is not expected to exceed 19%. The U.S. has also pledged to ensure Cambodia remains competitive, promising to lower Cambodia's tariffs if neighboring countries receive more favorable rates. This development is anticipated to be a significant opportunity for Cambodia's textile and garment sector to maintain and enhance its competitiveness in the U.S. market. Source: CPP Cambodia