Tariff Timeline and Export Performance
Although the 49% reciprocal tariff first announced on April 2, 2025 – the highest among all targeted countries – created much uncertainty and anxiety amongst businesses and investors, the rate was later reduced to 19% on August 1, 2025. Notably, between March and October 2025, the US remained Cambodia’s largest export destination, with total trade reaching USD 8.77 billion.
On October 26, 2025, the Cambodia reached a legally binding Agreement on Reciprocal Trade during the 47th ASEAN Summits in Kuala Lumpur:
- Cambodia agreed to eliminate all tariffs on US goods, including food, industrial products, and agricultural goods.
- The US maintains a 19% tariff rate on Cambodia’s exports. For identified products under Potential Tariff Adjustments for Aligned Partners, the reciprocal tariff rate will be eliminated.
Timeline of Key Developments
According to the Asian Development Bank, the 19% US tariff is expected to have a limited immediate impact, as Cambodia maintains a competitive advantage over regional competitors who face higher average tariffs of around 24%. Economic modelling confirms that the current rate is manageable, with a negligible near-term effect on GDP.
The US market is, and remains, Cambodia’s largest export destination, with its share of total exports rising from 33.1% in March to 48.7% in July, before moderating to 43.6% in October. This demonstrates Cambodia’s economic resilience and continued appeal as an export-oriented manufacturing base during the period of policy adjustment.
Source:
- https://ustr.gov/about/policy-offices/press-office/fact-sheets/2025/october/fact-sheet-united-states-and-cambodia-reach-agreement-reciprocal-trade
- https://www.whitehouse.gov/fact-sheets/2025/10/fact-sheet-president-donald-j-trump-secures-peace-and-prosperity-in-malaysia/?fbclid=IwZXh0bgNhZW0CMTEAAR5scrvyCOGZ-MC4UcA0DyHvrpJQ_wnk9JRF7l-PNqbjWLqQbmA5dCwzr7k_dA_aem_a6HZXWkwCR4sHu6f9iBVKQ
- General customs and excise department of cambodia ( Stata from Dec 2024 to Sep 2025 )
- https://www.khmertimeskh.com/501787738/19-us-tariffs-to-have-limited-impact-on-cambodia-adb-study-says/