Government and Cambodian Citizens Shocked Over US Government’s Tariff Increase on Cambodian Goods

By The Cambodia Daily
April 5, 2025
[photo caption] US President Donald Trump unveils a list of tariffs on all countries that do business with US on April 2, 2025.
The Donald Trump administration in Washington announced a 49% tariff increase on Cambodian imports to respond to the 97% tariff on Cambodian imports from the United States, putting Cambodia at the top of the list among all ASEAN member countries.
At a ceremony announcing tariffs on all countries doing business with the United States, a method of imposing reciprocal tariffs, Donald Trump and US government officials on April 2 has burst into laughter when they counted Cambodia, which had the highest tax rate of 49% out of 185 countries, while Cambodia imposed a tax rate of 97% on luxury goods from the United States.
Be noted that the import tax that the US government says Cambodia imposes at 97% is actually calculated based on unequal trade practices. Goods shipped from Cambodia to the United States were worth nearly $13 billion in 2024, while goods shipped from the United States to Cambodia in the same year were only worth about $300 million. This is called surplus in economic terms.
President Trump understands that they take a lot of money from the United States in this way every year because there are no taxes or low taxes. He added that this is also called discounted tariffs.
Apart from Cambodia, some ASEAN member countries are also required to pay taxes, such as Vietnam, which pays 46%, Laos, 48%, Burma, 44%, Thailand, 36%, Indonesia, 32%, Malaysia, 24%, Singapore, 10% and the Philippines at 17%. Thus showing that Cambodia is currently at the top of the list as the country with the highest tax burden in ASEAN.
Regarding this issue, the American Chamber of Commerce in Cambodia, Casey Barnett, wrote on his Facebook account on April 2, warning that US President Donald Trump has announced a 49% tariff increase on goods from Cambodia which will come into effect from 12:00 AM on April 9, and if Cambodia does not resolve it in time, it could seriously affect the national economy.
The president of the Chamber of Commerce claimed that in 2024, Cambodia exported $12.8 billion to the United States, but imported only $300 million.
Casey Barnett stated that the United States has requested a reduction in tariffs on US exports, facilitation of US business licensing, such as Starlink and cooperation for national security in the past, so Cambodia should grant licenses more quickly to US businesses, such as Starlink.
The labor rights officer at the Labor and Human Rights Alliance (CENTRAL), Khun Tharo, wrote on his Facebook account on April 2 that the tax restrictions could have a negative impact on the textile and garment sector, footwear and travel products, including other goods under the GSP preferential tariff system from the United States.
Mr. Khun Tharo said that the garment, footwear, and travel products sectors account for approximately 50 percent of Cambodia’s total exports, providing employment to nearly 1 million workers, while the number of citizens and beneficiaries of this economic sector also exceeds 3 million.
Mr. Khun Tharo pointed out that factories could close, workers would face job lost and income losses, and Cambodia’s annual economic growth would decline further, leading to a deeper economic and social crisis in Cambodia.
Regarding this issue, CNRP member of parliament Um Sam An told The Cambodia Daily on April 2 that the current US tariff figures for Cambodia are a serious curse for the Hun Sen government because companies and factories that do business in Cambodia will surely move to other countries. Also, Chinese companies that moved from China to Cambodia because they were afraid of paying high taxes on products from China will likely reconsider.
Mr. Um Sam An calls on the Cambodian government to rebuild diplomatic ties with the United States, including restoring human rights and democracy in order to leverage in negotiations with the United States, the superpower should ease tariffs on its imports to the US market in the future.
Some economic analysts say that this is a consequence of corrupt management of the national economy, causing a loss of national funds. When the economy is in crisis, the state has no reserve funds to support the production sector, only to borrow money.