UPDATES:
10:40.a.m: U.S. Commerce Secretary Howard Lutnick said the U.S has made a trade deal with Cambodia, however, the new tariff rate was not revealed, according to Bloomberg.
A Cambodian official said the country has received praise from Washington for the ongoing negotiation as the U.S. prepares to enforce sweeping new tariffs on August 1, trading partners without separate trade deals could soon face steep duties ranging from 15% to 20%.
In a letter dated July 7, U.S. President Donald Trump informed Prime Minister Hun Manet that the reciprocal tariff on all Cambodian goods had been lowered to 36%, down from the originally proposed 49%, and will take effect on August 1. The U.S. Commerce Secretary Howard Lutnick said Sunday that the August 1 deadline is final, with no extensions.
On Monday, President Trump also warned that most countries without separate trade deals with the U.S. will soon face tariffs of 15% to 20% on their exports, well above the broad 10% tariff he imposed in April.
Sar Senera, Deputy Secretary General of the Council for the Development of Cambodia (CDC), told CamboJA News that Cambodia’s situation looks more positive due to its proactive approach in negotiating with the U.S. Since May 2025, the CDC and the Ministry of Commerce have led four rounds of talks with U.S. officials over the new reciprocal tariff, with further discussions expected before it takes effect on August 1.
“Countries that haven’t negotiated in good faith will face blanket tariffs of 15% to 20%,” Sar said. “But for Cambodia, we’ve received recognition from the U.S. team for our government’s efforts.”
Kong Malis, a garment factory worker in Phnom Penh, told CamboJA News that she is concerned about the US tariffs on Cambodia, which could lead to job losses because factories might leave, if the tariffs are high.
She said that workers will face a hard time with lower family income and rising debts.
“I am very worried about this tariff issue. I don’t know how much longer factory workers like us will be able to work,” she said.
“It could cause factories to lay off workers or stop operating, which will affect many workers. Whether it’s me or other workers, we have a lot of debt, and we also have to pay for our children’s school fees.”
Malis asked the government, as well as other leaders and the U.S., to negotiate and help to lower the tariffs so as not to affect the livelihood of the people.
Ken Loo, secretary-general of the Textile, Apparel, Footwear and Travel Goods Association in Cambodia (TAFTAC), said he is not able to comment in detail yet, as the 36% tariff is not final and could be lowered.
He acknowledged the issue will have an impact but said it is too early to give a full assessment.
Pen Sovicheat, spokesperson of the Ministry of Commerce, did not respond.
