U.S. President Donald Trump has announced a 49% tariff on imports from Cambodia, the highest among several new tariffs he declared this morning (Cambodia time).
Trump described the import tariffs, which he called “reciprocal taxes,” in the simplest terms, ranging from 10% to 49%. He stated that the U.S. would impose on its trading partners what he claims they have been imposing on the U.S. for decades. He made the announcement on April 2, declaring it as “America Liberation Day.”
He stated: “Taxpayers have been ripped off for over 50 years. But it will not happen again.”
Cambodia is set to be one of the most severely affected countries by these retaliatory measures, with a 49% tariff rate. Other countries facing immediate tariff hikes include Vietnam (46%), Sri Lanka (44%), Bangladesh (37%), China (34%), India (26%), South Korea (25%), Japan (24%), and various European Union countries (20%).
Cambodia heavily relies on the U.S. market. The United States is Cambodia’s largest export destination, accounting for 37.9% of the country’s total exports, followed by Vietnam (13.8%), China (6.7%), and Japan (5.4%).
In 2024, Cambodia’s exports to the U.S. were valued at $9.92 billion, increasing by 11.4%, while U.S. imports to Cambodia reached $264.15 million, up 2.7%. The total bilateral trade between the two countries hit $10.18 billion, growing 11.2% from 2023. These hefty new tariffs will have a significant impact on Cambodia, where the majority of exports to the U.S. consist of garments, travel goods, and footwear.
Trump has promised that: “Jobs and factories will return to our country.” He sees this not only as an economic issue but also as a national security threat that endangers “our way of life.”
Financial markets have reacted negatively, with U.S. futures dropping by 3% in early Thursday trading. Tokyo stocks led the decline in Asian markets. Oil prices fell by more than $2 per barrel, while Bitcoin dropped by 4.4%.
However, these tariffs will ultimately hurt average American consumers rather than help them. Prices for everyday goods such as clothing (from Vietnam, Cambodia, and China) are likely to rise— a $20 T-shirt could jump to nearly $30 before sales tax is added in the U.S.
A global trade war seems increasingly unavoidable. As this real-life trade drama continues to unfold, the world should brace for more uncertainty, complications, and instability in the coming episodes.
From: Sorng Rida
