Cambodia Among Four Nations to Benefit from US Zero-Tariff for Textiles

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, according to Deputy Prime Minister and First Vice President of the Council for the Development of Cambodia (CDC), Sun Chanthol. The other nations slated to receive this preferential treatment are Bangladesh, Malaysia, and Indonesia. Deputy Prime Minister Sun Chanthol announced this during a press conference on new customs tariffs for imports from Cambodia to the United States, held on the afternoon of July 27, 2026, at the CDC. The zero-tariff provision, applicable for three years, is contingent upon the use of raw materials, such as fabrics, cotton, or yarn, imported from the United States, for a specified volume of exports. He clarified that the new tariff rate imposed by the US on Cambodia is 10% plus the MFN (Most Favored Nation) rate, not an additional 10% on top of the existing 19%. "On July 23, 2026, we received the new tariff rate of 10% plus MFN. This tariff rate is not an addition to the 19% rate; rather, Cambodia will pay tax on the MFN rate, which is an import tariff approved by the US Congress, not the US government. Therefore, all countries must pay MFN plus 10% or MFN plus 12.5%," Sun Chanthol stated. Furthermore, Deputy Prime Minister Sun Chanthol indicated that within the next two to three months, the US will re-evaluate the 'Excess Capacity' tariff for 16 countries, including Cambodia, Vietnam, Thailand, Malaysia, Indonesia, China, and the European Union. He reassured that discussions with representatives from the US Chamber of Commerce have confirmed that Cambodia will not lose its competitive edge. He specifically mentioned that the trade agreement signed by former President Donald Trump with Prime Minister Hun Manet will continue to be recognized, ensuring that even with new regulations, the total tariff will not exceed 19%. This means that the combined tariffs for Excess Capacity and 'Force Labor' will be capped at 19%. "They have also promised us that they will not let Cambodia lose its competitiveness. If we negotiate and finalize a tariff of only 19% for trade, and then they allow our neighboring countries to have lower tariffs than 19%, they will also lower ours to match theirs. They will not let us lose competitiveness with neighboring countries," the Deputy Prime Minister affirmed.