The government has assigned Deputy Prime Minister Sun Chanthol and Commerce Minister Cham Nimul to engage with the United States, once a “green light” is given by the US for tariff negotiations.
It follows US President Donald Trump imposing a 49% reciprocal tariff on Cambodian goods and varying import tax levels on goods for over 100 countries on April 2. The tariff will take effect on April 9.
Prime Minister Hun Manet, who made this announcement at the opening of the Morodok Techo skybridge in Phnom Penh, said Cambodia is ready to negotiate with the U.S.
“I would like to inform everyone that although I did not address this [retaliatory tax] on Facebook, it does not mean that I wasn’t working on this issue. I seriously considered it for about 37 hours,” he said, adding that two steps were decided upon.
The first was lowering the binding tax on 19 customs lines and the other was seeking a negotiation with the US.
Two days after Trump’s announcement, Hun Manet wrote a letter to negotiate the high tariff rate on Cambodian exports to the US. “We have already assigned working groups […] we have made an appointment, and when they [U.S] give us green light, we will fly [to the U.S] immediately,” he said.
The 19 custom tariff lines, representing about 85 goods imported from the U.S, had their tax reduced to 5% from a binding rate of 35%. These include fresh, chilled and frozen beef, poultry, fresh or dried nuts, soya bean, alcohol (whisky), and motor vehicles for transport goods.
Amid this, Commerce Minister Cham Nimul wrote a formal letter to the U.S Trade Representative Jamieson Greer informing him of the tax cuts for the 19 product line as well as a request to set a negotiation mechanism and to extend the deadline on the tariff on Cambodian goods.
She said the extension would enable further “consultations with stakeholder and thorough assessments of alternative approaches” both parties’ economic interests and sustainable development.
Separately, Hun Manet lashed out at former opposition leader Sam Rainsy and his supporters for criticizing Cambodia’s alleged imposition of 97% tariff on U.S imports to Cambodia. He said the opposition has “done nothing” but destroy the country’s interests.
The 97% tariff, which the U.S claimed was imposed on U.S goods by Cambodia, is inaccurate, as Cambodia’s maximum tariffs on imports are 35%, which is in line with WTO, Hun Manet explained, noting that the tariff on American goods was 29.4%. Additionally, 97% is the US trade deficit from its bilateral trade with Cambodia.
Comparing Cambodia opposition parties to those in Canada, which showed solidarity with the ruling party to remove the high US tariff on their goods, Hun Manet said opposition leaders in exile instead attacked Cambodia on the tariff issue.
Center for Alliance of Labor and Human Rights (Central) program manager Khun Tharo was concerned that the retaliatory tax could affect the private sector, especially garment and textile, footwear, and travel goods investment. He said the government has to demonstrate political will, so that the U.S government will consider continuing preferential tariffs.
“For me, this trade issue isn’t a negotiation burden but the important thing is what the U.S government wants in order to improve the situation in Cambodia,” Tharo said.
“It can also involve the past issues of human rights, democracy and online scams, including human trafficking […] because these have been recorded in reports which concerns the U.S,” Tharo said.
The trade imbalance between Cambodia and the U.S concerns the private sector which can destabilize employment.
Spokesperson Wesley Holzer of the U.S embassy in Phnom Penh said 10% tariffs on all imports to the U.S was effective April 5.
On April 9, individualized reciprocal tariffs on all countries, including Cambodia with a “large trade deficit” with the U.S will begin. “These actions will restore fairness and balance to our trade relationships,” Wesley said.
“The tariffs will remain in effect until such a time as President Trump determines that the threat posed by the trade deficit and underlying nonreciprocal treatment is satisfied, resolved, or mitigated,” he added.
He referred CamboJA News to the White House for further information regarding tariff implementation.
From January to February, Cambodian exports to the U.S rose 25% to $1.6 billion from the same period last year, according to the General Department of Customs and Excise.
The data also showed that in 2024, bilateral trade hit $10.18 billion, up 11.2% from 2023. Of that, exports to the U.S. climbed 11.4% to $9.92 billion, while U.S. imports inched up 2.7% to $264.15 million.
