US to impose 36% tariff on Cambodian export goods from August 1

The decision was communicated in an official letter from US President Donald Trump to Cambodian Prime Minister Hun Manet. Trump described the tariff measure as necessary to address what he deemed an “unfair” and “persistent” trade imbalance between the two nations.

“Our trading relationship with Cambodia has been far from reciprocal,” Trump stated in the letter. “Starting on August 1, 2025, we will charge Cambodia a tariff of 36 per cent on any and all Cambodian products sent into the United States.”

The US President emphasised that the move follows years of negotiations aimed at establishing a more balanced and fair trading relationship.

He explained that the 36% tariff was introduced to tackle the United States' growing trade deficit with Cambodia, which he described as unsustainable and a potential threat to US national security.

The letter further cautioned that any attempt to circumvent the tariff through the transshipment of goods via third countries would result in even higher tariffs being levied.

Trump noted that Cambodian companies could avoid the tariffs by relocating their manufacturing or investment operations to the United States, offering swift government approvals to facilitate such moves.

“If Cambodia, or companies within your country, decide to build or manufacture products within the United States, we will do everything possible to get approvals quickly, professionally, and routinely—in a matter of weeks,” the letter read.

The US President also warned that should Cambodia decide to increase tariffs on American goods, an equivalent increase would be applied in addition to the 36% tariff already announced. 

However, he added that if Cambodia were to open its markets and remove existing tariff and non-tariff barriers, the United States would be willing to reconsider or adjust the tariff rate.

“These tariffs are necessary to correct many years of Cambodia’s tariff and non-tariff policies and trade barriers,” the letter stated. “We look forward to working with you as your trading partner for many years to come. You will never be disappointed with the United States of America.”

Khmer Times reported that the Cambodian government has not yet provided an official response to the US decision. The new tariff is expected to impact a wide range of Cambodian exports, including garments, footwear, bicycles, and agricultural products—sectors that rely heavily on the American market.

The United States remains one of Cambodia’s largest export destinations, and analysts have warned that the 36% tariff could have significant repercussions for Cambodian businesses, employment, and the broader economy unless a resolution is found.