10% Tariff Proposed on Cambodian Exports as U.S. Reviews Forced Labor Concerns

PHNOM PENH, June 9, 2026 (KPT) — The United States has proposed a 10 percent tariff on Cambodian exports as part of a forced labor review, with Phnom Penh stressing its compliance with international standards and the resilience of its trade sector.

The Office of the U.S. Trade Representative (USTR) last week listed Cambodia among 60 economies under Section 301 of the Trade Act for lacking a comprehensive ban on imports of goods made with forced labor.

The Commerce Ministry said the lower proposed rate compared with 12.5 percent for many others reflected commitments under the Cambodia–U.S. Agreement on Reciprocal Trade. Officials said Phnom Penh will submit information and comments during the consultation process before a final decision is made.

The ministry underscored Cambodia’s legal and institutional frameworks, including prohibitions under national labor law and ILO Convention No. 29, ratified in 1969. It highlighted cooperation with the ILO’s Better Factories Cambodia program and inter‑agency efforts to strengthen compliance and supply chain monitoring.

Exports to the U.S. rose 32 percent in the first five months of 2026, even after a separate 10 percent tariff imposed under Section 122. According to data from Ministry of Commerce, Cambodia’s garment, footwear and travel goods (GFT) sector earned $3.78 billion in Q1 2026, up 7.7 percent year‑on‑year and accounting for nearly half of total exports, underscoring the sector’s resilience.

MoC added that the proposed USTR measure would also apply to ASEAN members and major partners including Australia, Japan, the EU and the UK, preserving relative competitiveness.

Public comments on the USTR proposal are due by July 6, with hearings scheduled for July 7.