CDC Clarifies New 10% U.S. Tariff is Not Added to Previous 19% Reciprocal Tariff

The Council for the Development of Cambodia (CDC) held a press conference on July 27, 2026, on the new customs tariff rates on imports from Cambodia to the United States, following a compliance investigation under Section 301 of the 1974 U.S. Trade Act. 

Under this act, the United States Trade Representative (USTR) has imposed a 10 per cent tariff – which took effect on July 24, 2026 – targeting trade partners with forced-labour import restrictions. The CDC press conference, led by H.E. Sun Chanthol, Deputy Prime Minister and First Vice Chairman of the CDC, clarified that Cambodia’s new tariff rate is 10 per cent, plus the Most-Favoured-Nation (MFN) tariff rate.

“On July 23, 2026, we received the new tariff rate of 10 per cent plus MFN. This rate is not added on top of the 19 per cent," explained H.E. Sun Chanthol. "Cambodia pays the MFN tariff, which is a tariff rate approved by the U.S. Congress, not by the U.S. Government.”

The 10 per cent tariff under Section 301 of the U.S. Trade Act affects imports from Cambodia, Malaysia, and Indonesia, while Vietnam, Thailand, Philippines and Singapore face a higher rate of 12.5 per cent.

The Deputy Prime Minister also shared that the U.S. is expected to announce a new Excess Capacity tariff within the next two to three months for 16 countries and economies, including Cambodia, Vietnam, Thailand, Malaysia, Indonesia, China and the European Union.

He said discussions with representatives of the U.S. Chamber of Commerce have indicated that Cambodia would not be allowed to lose its competitiveness, and the reciprocal trade agreement signed by U.S. President Donald Trump and Prime Minister Hun Manet will remain recognised.

He affirmed: 

“

“They have also promised us that Cambodia will not lose its competitiveness. If we conclude the reciprocal tariff or trade negotiations at 19 percent, but our neighbouring countries receive a rate below 19 percent, they will lower Cambodia’s rate to match them. They will not allow us to lose competitiveness with our neighbouring countries.”

H.E. Sim Sokheng, Secretary of State at the Ministry of Commerce, also confirmed during the press conference that Cambodia has secured tariff exemptions for 154 customs tariff lines of its exports to the U.S. market. Tariff-exempt products include textiles, various handicrafts, products made from wood waste, and certain plants and animals. On the subject of textiles, H.E. Sun Chanthol highlighted that Cambodia is among only four countries – along with Bangladesh, Malaysia and Indonesia – that will be eligible for a zero-tariff rate for three years on specified quantities of textile and garment exports, provided they use raw materials imported from the United States.

H.E. Sim Sokheng added that the Ministry continues to work toward securing zero-tariff or duty-free access to the U.S. market for other Cambodian products.