The new tariff announced by the United States has set a historical record for Cambodia, reaching as high as 49%, which will affect Cambodia's export products. Phnom Penh is concerned that its growth and employment may suffer serious consequences. Some observers believe that the true goal of the Trump administration is to indirectly target China, as China will use Southeast Asia to establish production networks, especially in textiles. However, the effect may be counterproductive.

Phnom Penh (AsiaNews) - The Trump administration has imposed a new tariff of 49% on Cambodian goods starting April 9, making the country one of the top affected countries alongside other Southeast Asian nations. This situation is now forcing Phnom Penh to carefully reflect and assess possible countermeasures. The reason given by the U.S. for increasing tariffs is based on the list outlined by Trump - this list is based on trade imbalance rather than actual implemented measures - stating that Cambodia would "impose up to 97% tariffs on goods from the U.S.", with the U.S. currently accounting for 37.9% of Cambodia's exports.

Meas Soksensan, spokesperson for the Ministry of Economy and Finance of Cambodia, stated that an immediate working group has been convened to evaluate the impact of these regulations. Soksensan said that the committee "has studied the consequences, and now we need to take concrete and comprehensive measures to address this issue while ensuring our economy remains competitive and beneficial for growth and employment."

The core of the trade dispute lies in Cambodia's massive trade deficit. In 2024, bilateral trade reached $10.18 billion, growing by 11.2%. However, the U.S. exports to Cambodia amounted to only $264.14 million.

These figures clearly show that despite Phnom Penh's desire to modify the tariff, Cambodia still faces the risk of suffering the most severe consequences, which could also have an impact on the U.S. economy. According to data from the Asian Development Bank, Cambodia is still classified as a lower-middle-income country with a poverty rate of 17.8%. Additionally, the country remains strongly influenced by neighboring major powers: after nearly forty years of governance by the Hun Sen government, power was transferred to his son, Hun Manet, but the political line remains closely aligned with the interests of a great Eastern power.

The garment, footwear, and accessories industries are Cambodia's main export products, with last year's export value reaching approximately $14 billion. More than half of the enterprises active in Cambodia's garment, footwear, and accessories sectors are Chinese-owned. Therefore, it has long been suspected that some exported products from other countries utilize allied regions and more favorable trade conditions to circumvent imposed tariffs.

Some observers believe that the Trump administration intends to indirectly target China through economies such as Cambodia, Vietnam, Indonesia, Laos, Myanmar, and Thailand. The aim is to slow down China's overseas investments, influence partner countries' exports, and thus impact the economy of this Asian giant.

However, this strategy may have side effects on the U.S. Some major brands in the American fashion and footwear industries, which already have significant interest in Southeast Asia, may face impacts on production costs and supply chains unless the tariffs change.

Source: Asia News

Author: Steve Suwannarat

Original article: https://www.toutiao.com/article/7490812393996419593/

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