Phnom penh: Cambodia is among a select group of four countries set to benefit from a zero-tariff rate for three years on certain textile and garment exports to the United States. This preferential treatment applies under the condition that the exports use raw materials imported from the U.S., as revealed by H.E. Sun Chanthol, Deputy Prime Minister and First Vice Chairman of the Council for the Development of Cambodia (CDC).

According to Agence Kampuchea Presse, the other nations qualifying for this zero-tariff rate include Bangladesh, Malaysia, and Indonesia. The announcement was made during a press conference centered on the 'New Tariff Rate on Imports from Cambodia into the United States Following the Section 301 Trade Compliance Investigation under U.S. Trade Law,' hosted at the CDC.

H.E. Sun Chanthol elaborated that the zero-tariff privilege is applicable to specified quantities of textile and garment exports that incorporate U.S.-imported raw materials such as fabric, cotton, and yarn. He further clarified the new U.S. reciprocal tariff rate, stating that Cambodia's rate is set at 10 percent plus the Most-Favoured-Nation (MFN) tariff rate, rather than an additional 10 percent on top of a previously announced 19-percent rate.

On July 23, 2026, the new tariff rate was confirmed as 10 percent plus MFN, a tariff rate that must be approved by the U.S. Congress, not the government. Sun Chanthol noted that countries face either a 10 percent or 12.5 percent charge on top of their applicable MFN rate.

Furthermore, the U.S. is anticipated to introduce a new Excess Capacity tariff within the next few months for 16 countries and economies, including Cambodia, Vietnam, Thailand, Malaysia, Indonesia, China, and the European Union. Discussions with U.S. Chamber of Commerce representatives have assured Cambodia's continued competitiveness. The reciprocal trade agreement signed by U.S. President Donald J. Trump and Prime Minister Samdech Moha Borvor Thipadei Hun Manet remains valid.

Sun Chanthol emphasized that even with the potential introduction of the Excess Capacity tariff, the combined rate of Excess Capacity and the Forced Labor tariff would be capped at 19 percent, as per the agreement. He reassured that if the negotiated tariff exceeds 19 percent while neighboring countries receive lower rates, Cambodia's rate would be adjusted to maintain competitive parity.