Cambodia Says U.S. Reciprocal Tariffs Likely Capped at 19% or Lower

PHNOM PENH, May 7, 2026 (KPT) — Cambodia expects any reciprocal tariffs imposed by the United States to remain capped at 19 percent or potentially lower, Deputy Prime Minister Sun Chanthol said Thursday, seeking to reassure investors amid ongoing trade discussions.

Speaking at the Cambodia Investment Forum 2026, themed “Beyond Investment: Strengthening Resilience Through Proactive Aftercare and Strategic Partnership,” Chanthol said Cambodian officials recently met with representatives of the U.S. Trade Representative following developments related to Washington’s reciprocal tariff policies.

He noted that U.S. officials confirmed existing agreements between the two countries would continue to be respected, limiting Cambodia’s tariff exposure to a maximum of 19 percent. While the U.S. president retains authority under provisions including Sections 122, 301 and 232 of U.S. trade law, Cambodia is expected to avoid higher rates due to bilateral accords already in place.

Chanthol added that U.S. officials indicated Cambodia would not face tariffs higher than those imposed on other countries in the region, suggesting the final level could be lower than 19 percent.

The deputy prime minister said the outcome followed swift diplomatic engagement after Washington announced reciprocal tariff measures on April 2. Cambodia immediately sent a letter to President Donald Trump on April 3 seeking negotiations.

He announced that a Cambodian special task force will travel to the United States on May 14 for further talks and to finalize discussions related to the agreement signed on October 26, 2025, before Cambodia proceeds with internal ratification.

Cambodia exported more than US$3.35 billion worth of goods to the United States in the first quarter of 2026, marking a 38.4 percent jump from US$2.42 billion in the same period last year, the General Department of Customs and Excise said Thursday.

Total bilateral trade exceeded US$3.48 billion, with Cambodian exports accounting for the overwhelming share. Imports from the United States rose to over US$126 million, up 67.9 percent year on year, reflecting stronger two way flows.

Garments, footwear, travel goods and furniture continued to dominate Cambodia’s shipments to the U.S., underscoring the American market’s role as a key driver of the kingdom’s export growth.