Cambodia Steps Up Trade Compliance as New U.S. Tariffs Reshape Bilateral Economic Ties

PHNOM PENH, July 29, 2026 (KPT) – Cambodia is stepping up trade compliance and reforms after Washington imposed a new 10 percent tariff rate, as the Kingdom seeks to deepen economic ties with the United States while maintaining regional competitiveness.

The Council for the Development of Cambodia (CDC) on Monday held a press conference to clarify the new U.S. customs tariff rates following a compliance investigation under Section 301 of the U.S. Trade Act.

Deputy Prime Minister Sun Chanthol, First Vice‑Chairman of the CDC, led the briefing alongside Sim Sokkheng, Secretary of State at the Ministry of Commerce, and Chan Sopheap, Deputy Director General of Customs and Excise. Officials outlined Cambodia’s cooperation under the U.S. trade framework and addressed implications for exporters, investors and bilateral relations.

Chanthol welcomed the tariff, noting it gives Cambodia a 2.5‑point advantage over some regional competitors, but cautioned that favorable rates alone would not guarantee stronger investment. “We cannot rely entirely on reciprocal tariffs,” he said, stressing the need to improve procedures, logistics and the broader business environment.

He said Cambodia’s appeal rests on stability, infrastructure, a young workforce and an open regime allowing 100 percent foreign ownership and unrestricted profit transfers. Reforms at the CDC aim to simplify investment procedures and strengthen logistics as Cambodia positions itself in regional supply chains.

Investment approvals remain robust, with 276 projects worth $4.7 billion cleared in the first half of 2026, after $10 billion in 2025. Officials said compliance, transparency and reforms will be critical to turning tariff advantages into longer‑term gains in exports and investment while reinforcing Cambodia‑U.S. economic ties.