(Phnom Penh): Sun Chanthol, First Vice Chairman of the Council for the Development of Cambodia (CDC), clarified on Monday that the United States' new 10 percent tariff on Cambodian exports is not an additional levy on top of the previously negotiated 19 percent reciprocal tariff, but a separate Section 301 measure applied alongside the existing Most Favoured Nation (MFN) tariff.

Speaking at a press conference on Monday (Jul. 27), Sun Chanthol explained that the new tariff consists of 10 percent plus the MFN rate, which is determined by the US Congress and applies to all trading partners.

The new Section 301 tariff, which took effect last Friday, targets countries over concerns related to forced labour and excess industrial capacity. Under the measure, Cambodia, Malaysia, and Indonesia are subject to a 10 per cent tariff, while Viet Nam, Thailand, the Philippines, and Singapore face a 12.5 per cent rate. Both rates are applied in addition to the applicable MFN tariff.

On the occasion, Sun Chanthol said Cambodia has resolved issues related to forced labour, with only the excess capacity investigation still pending. The Office of the United States Trade Representative (USTR) is expected to announce its findings within the next two to three months.

Despite the ongoing review, he said US officials had assured Cambodia that it would not lose its competitive position in the US market.

Looking ahead, Sun Chanthol said Cambodia will continue to attract more US investment while expanding trade and investment ties with other markets to reduce reliance on any single country.

Cambodia exported USD 7 billion worth of goods to the US in the first half of 2026, a 41 percent increase compared with the same period last year, according to the General Department of Customs and Excise (GDCE).
=FRESH NEWS