Cambodia has launched its first round of trade negotiations with the United States in Washington, aiming to reduce one of the steepest tariff rates imposed during the Trump administration.
The U.S. is Cambodia’s largest export destination, and the 49% tariff poses a major threat to its critical textile and footwear industries. A failure to secure tariff relief could severely impact the country’s manufacturing sector and broader economy.
In an official statement, the Cambodian government described the discussions as “frank and constructive,” emphasizing that both sides expressed mutual interest in strengthening bilateral trade and investment. A second round of talks is scheduled for early June.
The talks included Cambodia’s Deputy Prime Minister Sun Chanthol, Commerce Minister Cham Nimul, and Sarah Ellerman, the U.S. Assistant Trade Representative for Southeast Asia and the Pacific. The U.S. Trade Representative’s Office has not yet commented publicly on the discussions.
Cambodia is the Southeast Asian country hardest hit by these tariffs. The 49% rate is the highest among regional peers. Last month, Moody’s revised Cambodia’s credit outlook from stable to negative, citing trade-related risks that could hamper future economic growth.
In 2024, Cambodia’s exports to the U.S. made up 37.9% of its total outbound shipments, valued at nearly $10 billion. The bulk of these exports were garments and footwear — industries that form the backbone of Cambodia’s $49.8 billion economy and support major global brands like Adidas, H&M, Ralph Lauren, and Lacoste.
