By 
Anna Pelizzari
Allan Wadsworth, April 15, 2025
Cambodia is facing serious economic strain after the US imposed a 49 percent tariff on its exports, hitting one of the country’s main sources of income. The move raises concerns over job losses, especially in the garment sector, adding pressure to an already fragile political landscape.
The United States, under the presidency of Donald Trump, has imposed sweeping tariffs that are affecting several countries, with Cambodia among the most impacted. A 49 percent tariff now applies to Cambodian exports; Cambodia’s trade with the US represents around 25 percent of its GDP. In response, the Cambodian government has appealed to the US to postpone the tariffs, warning of the damage they could cause. Even the local American Chamber of Commerce has called for the tariffs to be dropped, arguing that high duties will not bring manufacturing back to the US.
The economic repercussions of the tariffs are expected to be significant, especially if they remain in place long term. Prime Minister Hun Manet is already facing discontent due to economic stagnation and growing gender inequality. In an attempt to maintain stability, the regime has granted economic privileges such as monopolies and land concessions to rival political clans. This approach has led to an oversupply of property developments, many of which are now failing. With key export sectors under pressure, the regime’s hold on power could become even harder to keep.
The garment sector, Cambodia’s largest employer with around one million workers, represents one of the few reliable sources of income to some of the country’s poorest citizens. Many of these workers are women, and their incomes support entire families. The 49 percent tariff now threatens to disrupt this industry and lead to widespread job losses. As companies consider moving their production elsewhere, thousands of workers are left fearing not just unemployment, but also limited access to basic livelihood needs.
Sources and Further Readings:
Trump’s tariffs are a huge blow to Vietnam’s economic ambitions
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