U.S. Trade Probe Highlights Cambodia’s Heavy Dependence on a Single Export Market

PHNOM PENH, Mar. 12, 2026 (KPT) — A sweeping U.S. investigation into global manufacturing overcapacity has cast a spotlight on Cambodia’s reliance on a single export market, underscoring structural vulnerabilities in the Kingdom’s economy, an expert said Friday.

The probe, launched under Section 301 by the Office of the United States Trade Representative, includes Cambodia among economies under review alongside China, Vietnam, Thailand, Japan and the European Union.

Arnaud Darc, former president of EuroCham Cambodia, said Cambodia is not responsible for the global overcapacity under investigation. But its inclusion highlights a deeper issue — the country’s export structure remains highly concentrated in one market and a narrow range of industries.

“With nearly 38 percent of Cambodia’s exports going to the United States, the country is more exposed than comparable manufacturing economies,” Darc said.

Official data show Cambodia exported about $12.6 billion worth of goods to the United States in 2024, making it the Kingdom’s largest export destination. Garments, footwear and travel goods account for more than half of total export earnings, employing more than 900,000 workers in factories producing for international brands.

Darc warned that this model, based largely on contract manufacturing, leaves smaller economies vulnerable to external shocks. “The current U.S. investigation illustrates how small export platforms can become exposed to trade tensions they neither cause nor control,” he said.

The Section 301 probe focuses on sectors such as steel and electric vehicles, where Washington believes global capacity has expanded beyond demand. Public consultations and hearings are scheduled to begin in May.

Although Cambodia is not accused of distorting markets, analysts say the investigation is a reminder that the country’s export success remains tied to external supply chains. Darc suggested Cambodia should use this moment to diversify markets, expand industrial capacity along value chains, and ensure strict compliance with rules of origin.

“Cambodia did not create the trade tensions reshaping the global economy,” he said. “But the investigation is a signal that the country must prepare its export model for the trading system of the next decades.”