(Phnom Penh): Cambodia is set to face a lower US tariff on its garment exports than several regional competitors after Washington introduced new duties targeting countries deemed insufficiently active in preventing imports linked to forced labour.

According to the US Trade Representative, Cambodia, Bangladesh, Indonesia and Malaysia will be subject to a 10 percent Section 301 tariff. Meanwhile, Thailand and Viet Nam, which have not adopted comparable measures, will face a higher rate of 12.5 percent.

The new measures, ordered by President Donald Trump, follow investigations covering 60 economies. Cambodia qualified for the lower tariff after introducing a ban on imports associated with forced labour or taking similar steps.

The US also plans to introduce tariff-rate quotas for Cambodia, Bangladesh, Indonesia and Malaysia over the next three years. The quotas are intended to encourage these countries to increase purchases of US cotton and textile materials.

The new tariff system could change the competitive landscape among Southeast Asia’s major apparel exporters and influence sourcing decisions by international brands.

Cambodia’s garment, footwear and travel goods sectors remain key contributors to the country’s export earnings. Customs data showed that Cambodian exports to the US exceeded USD 7 billion in the first half of 2026, representing an increase of nearly 30 percent from the same period a year earlier.

In 2025, two-way trade between Cambodia and the US reached USD 13.14 billion, while Cambodian exports grew 28.5 percent to USD 12.73 billion.

Officials said the measures highlight the increasing importance of supply-chain transparency and compliance with labour standards in maintaining access to international markets.
=FRESH NEWS