Cambodia’s exports to US hit $3 billion in four months

Cambodia’s exports to US hit $3 billion in four months

Cambodia’s exports to the United States surged to over $3 billion between January and April 2025, marking a 22 percent increase compared to the same period last year, according to a report released by the General Department of Customs and Excise of Cambodia.

The report noted that during the first four months of the year, the US remained Cambodia’s largest export market, followed by Vietnam ($1.7 billion), Japan ($523 million), China ($478 million), Canada ($366 million), and Thailand ($327 million).

It also highlighted that bilateral trade between Cambodia and the US reached $3.29 billion during this period, representing a 22.6 percent year-on-year increase. Of this, Cambodian exports accounted for $3.20 billion, up 22.3 percent from the previous year.

Meanwhile, imports from the US totalled $97.8 million, reflecting a 34.8 percent increase, the report added.

Speaking to Khmer Times, Lor Vichet, Vice President of the Cambodia Chinese Commerce Association (CCCA), reaffirmed the strategic importance of the United States and Europe as Cambodia’s key trading partners. He underscored their vital role in driving job creation in the garments, footwear, and travel goods (GFT) sectors.

Commenting on ongoing trade talks between Cambodia and the US, Vichet praised the government’s careful and diplomatic approach. He emphasized that the US remains a critical export market for Cambodia and called diplomacy the only viable path to deepen trade ties.

“The United States plays a major role in absorbing Cambodian exports, and engaging in negotiations is the only practical route forward,” Vichet said. “If these discussions bring genuine advantages to Cambodia, then we should move ahead with them.”

He stressed the need to preserve strong relationships with existing partners while pursuing new trade opportunities. To enhance negotiations with the US, Vichet proposed that Cambodia commit to importing $1 billion worth of American goods annually, a gesture he believes could foster goodwill and open doors for greater market access.

“It seems the US wants Cambodia to boost its imports of American products,” he noted. “Taking that step could smoothen trade discussions and possibly lead to reduced tariffs on Cambodian exports.”

He suggested this move could become a strategic bargaining chip, helping to lower tariffs on Cambodian goods entering the US. He also encouraged the government to explore the feasibility of a zero-percent tariff on US products as part of a broader, balanced trade strategy.

Beyond trade volume, Vichet urged policymakers to use the negotiations to expand Cambodia’s export portfolio and attract US investment by reducing reliance on GFT products and promoting diversification.

“These bilateral talks offer Cambodia a chance to unlock its full trade potential and become a more attractive destination for American investors,” he said.

Calling his proposal realistic and mutually beneficial, Vichet concluded, “The goal should be for both countries to come out of negotiations with meaningful results based on mutual respect and shared benefit.”

It is worth noting that on April 3, under President Donald Trump’s sweeping tariff policy, Cambodia became the hardest-hit ASEAN country, facing a steep 49 percent US tariff due to alleged unfair trade practices.

In a surprising turn, however, President Trump later announced a 90-day suspension of the tariffs, reducing the originally planned 49 percent rate to 10 percent until July for countries, including Cambodia, that had not retaliated against US trade measures.

On May 10, Sun Chanthol, First Vice-Chairman of the Council for the Development of Cambodia, led a delegation to the US for negotiations on the Cambodia-US Trade and Investment Framework Agreement (TIFA), scheduled for May 13-15 in Washington, D.C. This follows two prior virtual meetings with US trade officials in April and May.

The discussions stem from Prime Minister Hun Manet’s letter to US President Donald Trump requesting the launch of trade talks. Cambodia’s delegation is prepared to advance fair and balanced trade relations.

The government has also reinforced its commitment to combatting origin fraud in exports, issuing new regulations to ensure transparency and compliance in goods destined for the US market.

khmertimeskh