AKP Phnom Penh, July 27, 2026 --

Cambodia is among only four countries that will be eligible for a zero-tariff rate for three years on specified quantities of textile and garment products exported to the United States, provided they use raw materials imported from the U.S., H.E. Sun Chanthol, Deputy Prime Minister and First Vice Chairman of the Council for the Development of Cambodia (CDC), said.

The other three countries are Bangladesh, Malaysia and Indonesia.

H.E. Sun Chanthol made the remarks at a press conference on the “New Tariff Rate on Imports from Cambodia into the United States Following the Section 301 Trade Compliance Investigation under U.S. Trade Law,” held at the Council for the Development of Cambodia (CDC) on Monday afternoon.

He explained that the preferential zero-tariff treatment applies to certain quantities of textile and garment exports using U.S.-imported raw materials, including fabric, cotton and yarn.

Regarding the new U.S. reciprocal tariff rate, H.E. Sun Chanthol clarified that Cambodia’s rate is 10 percent plus the Most-Favoured-Nation (MFN) tariff rate, rather than 10 percent on top of the previously announced 19-percent rate.

“On July 23, 2026, we received the new tariff rate of 10 percent plus MFN. This rate is not added on top of the 19 percent. Cambodia pays the MFN tariff, which is a tariff rate approved by the U.S. Congress, not by the U.S. Government,” he explained.

He added that countries are subject to their applicable MFN rate plus either 10 percent or 12.5 percent.

H.E. Sun Chanthol also said that the U.S. is expected to announce a new Excess Capacity tariff within the next two to three months for 16 countries and economies, including Cambodia, Vietnam, Thailand, Malaysia, Indonesia, China and the European Union.

He said discussions with representatives of the U.S. Chamber of Commerce indicated that Cambodia would not be allowed to lose its competitiveness. According to him, the reciprocal trade agreement signed by U.S. President Donald J. Trump and Prime Minister Samdech Moha Borvor Thipadei Hun Manet remains recognised.

He explained that even if the Excess Capacity tariff is subsequently determined, the combined rate of Excess Capacity and the Forced Labor tariff would not exceed 19 percent, in accordance with the agreement.

“They have also promised us that Cambodia will not lose its competitiveness. If we conclude the reciprocal tariff or trade negotiations at 19 percent, but our neighbouring countries receive a rate below 19 percent, they will lower Cambodia’s rate to match them. They will not allow us to lose competitiveness with our neighbouring countries,” H.E. Sun Chanthol affirmed.

Article in Khmer by Srey Pich
Article in English by C. Nika