U.S. Policy Update
Under the executive order "Further Modifying the Reciprocal Tariff Rates", issued on July 31, 2025, the U.S. reciprocal tariff on imports from Cambodia has been reduced to 19%, effective August 7, 2025.
This marks a downward adjustment from an initially proposed 49%, later reduced to 36%, and then finally negotiated down to 19% following the ceasefire mediated between Cambodia and Thailand.
Tariff Structure
Reciprocal Tariff: 19% flat rate on all Cambodia-origin goods, including cover products.
MFN Duty: Absorbed into the reciprocal tariff; no separate MFN duty applies.
Transshipment Penalty: Goods found to have circumvented rules via third-country routing may face up to 40% duty
Client Implications & Recommendations
Lower Cost Burden: A significant reduction compared to the previous 36% rate, making Cambodian-origin covers more cost-competitive.
Compliance is Crucial: Ensure valid documentation of Cambodian origin to avoid penalties.
Critical Timing: Shipments in transit before August 7 that clear customs before October 5 may still qualify for the old rate under specific transit provisions
Summary Table
| Item | Rate |
| Reciprocal Tariff | 0.19 |
| Transshipment Penalty Tariff | Up to 40% |
| MFN Duty | Merged into reciprocal tariff |
For clients, this adjustment offers lower landed costs and enhanced competitiveness—but strict adherence to origin rules is essential.
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