Cambodia Secures Full Tariff Elimination in U.S. Trade Deal, Surpassing Regional Peers

PHNOM PENH, Cambodia (Oct. 28, 2025) — Cambodia’s textile and manufacturing sector is celebrating a major diplomatic breakthrough following the signing of the Agreement on Reciprocal Trade with the United States at the ASEAN Summit in Kuala Lumpur.

The deal, signed on October 26 and witnessed by U.S. President Donald J. Trump and Malaysian Prime Minister Anwar Ibrahim, eliminates tariffs on 100 percent of U.S. industrial and agricultural exports to Cambodia, according to the United States Trade Representative.

In return, Cambodia gains expanded access to the U.S. market for its key export sectors, particularly garments, footwear, and travel goods (GFT). In 2024, Cambodia exported $9.7 billion in garments, $1.6 billion in footwear, and $1.9 billion in travel goods, with the United States remaining its largest single export destination.

According to the U.S. Trade Representative, Cambodia is the only ASEAN country to receive full tariff elimination—equivalent to a 19% rate—across all U.S. product categories, surpassing preferential terms offered to Vietnam, Indonesia, and Thailand under existing frameworks. This positions Cambodia as a uniquely favored partner in the region.

The Textile, Apparel, Footwear & Travel Goods Association in Cambodia (TAFTAC) issued a letter of appreciation, praising the leadership of Prime Minister Hun Manet, Deputy Prime Minister Sun Chanthol, Minister of Commerce Cham Nimul, and Secretary of State for the Ministry of Economy and Finance Phan Phalla. TAFTAC called the agreement a “historic achievement” and urged all stakeholders to uphold transparency and compliance with international trade norms.

“As we move toward implementation, it is essential that all stakeholders uphold the principles, rules, and norms embedded in this agreement—particularly transparency, fairness, and compliance with international trade standards,” TAFTAC stated. “Doing so will not only strengthen Cambodia’s reputation as a reliable trading partner but also ensure that the benefits of this agreement are realized for our economy and our people.”

The association emphasized that successful implementation will unlock new opportunities for investment, job creation, and export growth.