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Trump's 49% Tariff on Cambodian Exports Threatens Garment Industry and Regional Stability

The unprecedented levy, part of a broader US trade policy, jeopardizes Cambodia's economy, heavily reliant on garment exports, and raises concerns over shifting geopolitical alignments in Asia.

A vendor carries bags of clothes at Tan Binh Market, the largest wholesale clothing and textile market in Ho Chi Minh City, Vietnam on April 3.
A truck transports a container toward the entrance of the Phnom Penh Autonomous Port on April 3, 2025.
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Women making clothes in Phnon Penh’s Russian Market

Overview

  • The Trump administration has imposed a 49% tariff on Cambodian exports, the highest in Asia, targeting nations with significant trade deficits.
  • Cambodia's garment industry, employing one million workers—75% of whom are women—is bracing for factory closures and widespread job losses.
  • Over 37% of Cambodia's exports go to the US, leaving its economy particularly vulnerable to the new tariffs.
  • The tariffs are part of a broader strategy impacting Southeast and South Asia, with Laos, Vietnam, and Myanmar also facing levies exceeding 40%.
  • Analysts warn that the economic strain could push affected nations closer to China, potentially weakening US influence in the region.