Trump Lowers Cambodia Tariffs to 36 Percent

PHNOM PENH – U.S. President Donald Trump has announced a 36 percent tariff on Cambodian goods, down from the initial 49 percent, in a move aimed at addressing trade imbalances.

“Starting on August 1, 2025, we will charge Cambodia a tariff of only 36 percent on any and all Cambodian products sent into the United States, separate from all Sectoral Tariffs,” Trump wrote in a letter to Prime Minister Hun Manet, dated July 7.

Trump also warned that goods transshipped through other countries to evade higher tariffs would be taxed at the higher applicable rate. Trump also said that the tariff could be adjusted upward or downward, depending on future developments in U.S.-Cambodia relations.

The newly announced rate is a reduction from the initial 49 percent tariff Trump announced on April 3, which at the time made Cambodia the most heavily impacted country in the region.

Following that announcement, Cambodia requested a delay and initiated three rounds of negotiations, culminating in the reduced tariff. Prime Minister Hun Manet officially responded 41 hours after the original April announcement, calling for talks and offering a proposal to postpone the tariff hike.

According to Ministry of Commerce spokesperson Pen Sovicheat, the negotiations have made “significant progress,” and there is continued hope for a more favorable outcome.

While Cambodia now faces a 36 percent tariff, other countries in the region have been hit with steeper duties: Myanmar and Laos are each subject to 40 percent tariffs, while Thailand matches Cambodia at 36 percent, Indonesia faces 32 percent, and Malaysia faces 25 percent. Meanwhile, Vietnam has been assigned the lowest rate of 20 percent.