Cambodia faces lower US forced‑labor tariff than Thailand, Vietnam

PHNOM PENH, July 24, 2026 (KPT) – Cambodia will face a lower US tariff on garment exports than some of its regional rivals after Washington imposed new duties targeting economies accused of failing to adequately enforce bans on imports made with forced labor.

The Office of the US Trade Representative said imports from Cambodia, Bangladesh, Indonesia and Malaysia will be subject to a 10 percent Section 301 tariff, while countries that have not adopted similar measures – including Thailand and Vietnam – will face a higher 12.5 percent rate. The measures, directed by President Donald Trump, follow investigations into 60 economies.

USTR said Cambodia qualifies for the lower rate because it has introduced a forced labor import prohibition or taken comparable steps. The agency also announced plans to establish tariff‑rate quotas for Cambodia, Bangladesh, Indonesia and Malaysia over the next three years, designed to encourage purchases of US cotton and textile inputs.

The new tariff structure places Cambodia alongside Bangladesh, Indonesia and Malaysia, but ahead of Thailand and Vietnam, reshaping competition among Southeast Asia’s leading apparel exporters. Analysts say the differentiated rates could influence sourcing decisions by major international brands.

Cambodia’s garment, footwear and travel goods industries remain among its largest export earners. Customs data showed exports to the US reached more than US$7 billion in the first half of 2026, up nearly 30 percent year‑on‑year. Two‑way trade in 2025 totaled US$13.14 billion, with Cambodian exports rising 28.5 percent to US$12.73 billion.

Officials said the measures underscore the growing importance of supply chain transparency and labor compliance in securing access to global markets.