The government has clarified details of the recently announced 0% per cent customs duties on US goods. The rate, which was part of the recent reciprocal tariff negotiations, will only apply to new goods.
Existing import duties will still apply to used US goods such as motor vehicles, explained an August 8 Royal Government Sub-Decree.
The “Sub-Decree on the Implementation of Customs Duty Rates on Goods Imported from the United States” specifies that a 0% customs duty will apply to new goods originating from the US and imported directly into the Kingdom of Cambodia. The 0% rate does not apply to used goods.
Meas Sok Sensan, spokesperson for the Ministry of Economy and Finance, told The Post on August 8 that recently circulated videos and social media posts claiming that the new 0% rate will apply on used vehicles from the US are inaccurate.
“Let me clarify — once an item is used, it does not fall under the applicable categories for the 0% rate. So, the vehicles like used cars or trucks mentioned in those videos are not eligible. Under WTO (World Trade Organization) law, used goods are not covered by these duty exemptions,” he said.
Potential US imports include cars, auto parts, machinery and tech equipment, pharmaceuticals and medical supplies, animal and agricultural products, and construction materials. Cambodia’s main exports to the US are garments, footwear, travel goods, bicycles, bicycle tires and agricultural products.
On April 2, (US time), the administration of President Donald Trump announced that it would levy significantly higher import duties on goods from multiple countries. For Cambodian-made products, the US imposed one of the highest tariffs globally, at 49%.
However, after extensive bilateral negotiations, the US administration first reduced the rate to 36%, and finally to 19%. The new rate came into effect on August 1.
Cambodia is now viewed as one of the most successful countries in negotiating trade terms with the US. This success is expected to boost exports to the US and enhance its potential to attract more foreign direct investment in the future.
According to the General Department of Customs and Excise (GDCE), in the first half of 2025, bilateral trade between Cambodia and the US totalled $5.69 billion, an increase of 25.7%. Of this, exports accounted for $5.52 billion (up 25.6%), while imports reached $164.9 million (up 29%).
In 2024, total trade between Cambodia and the US was $10.18 billion, an increase of 11.2%. Exports were $9.9 billion (up 11.4%) and while US imports were valued at $264.14 million (up 2.7%).
