US reciprocal tariffs, set at 19% by US President Donald Trump on all Cambodian imports, will be removed following a recent ruling by the US Supreme Court.
Sun Chanthol, first vice-chairman of the Council for the Development of Cambodia (CDC), explained the importance of the ruling to the media, during the first day of the March 4 and 5 ASEAN-Cambodia Business Summit.
He noted that the tariffs, which were announced in early April 2025 and took effect on August 1, have now been declared unlawful, under the International Emergency Economic Powers Act (IEEPA).
“On February 20, the US Supreme Court ruled that Trump’s reciprocal tariffs were unlawful under the International Emergency Economic Powers Act (IEEPA) and must therefore be withdrawn,” he said.
He noted, however, that under Section 122 of the US Trade Act of 1974, the US government may still impose tariffs of up to 15% on top of the base Most Favoured Nation (MFN) tariff rate on all imported goods from foreign countries for a period of 150 days.
Following the 150-day period, all countries, including Cambodia, will have to wait for further decisions from the sometimes-volatile Trump administration.
“After 150 days, in simple terms, he can take different tools from his ‘toolbox’ — Section 301 could be used to impose tariffs on any country, or Section 232, or even Section 338. We do not know which provision could be used to impose additional tariffs once the 150 days are over,” he added.
On April 2, 2025, U.S. President Donald Trump announced reciprocal tariffs on imports from all countries, with Cambodia initially facing a tariff rate of 49%. However, after negotiation efforts by the Cambodian government, the rate was reduced to 36% and then 19%, which came into effect on August 1, 2025.
The United States is the Kingdom’s second-largest trading partner, after China.
The General Department of Customs and Excise (GDCE) reported that in 2025, trade between Cambodia and the US totalled $13.15 billion, an increase of 29.2% over 2024.
Cambodia exported $12.73 billion worth of goods to the US, up 28.5%, while imports equalled $417.07 million, up 57.8%. Cambodia’s main exports to the US market include garments, footwear, travel goods, bicycles and vehicle tires.
