U.S. Exports to Cambodia Surge Following Duty-Free Trade Concessions

Trade relations between Cambodia and the United States have entered a new phase following a shift in tariff policies in 2025. According to data and analysis provided by Casey Barnett, President of AmCham Cambodia and CamEd Business School, U.S. exports to the Kingdom rose by 96 per cent year-on-year between August and December 2025.

This growth followed Cambodia’s decision in August 2025 to grant duty-free access to all U.S.-made goods, with the exception of used goods. The concession was designed to mitigate an initial 49 per cent “reciprocal” tariff previously imposed by the Trump administration, which posed a substantial threat to Cambodia’s export manufacturing sector—an industry that sends 38 per cent of its total output to the U.S. market.

Barnett noted that U.S. exports saw increases in 54 out of 85 product categories. Most prominent was a nine-fold rise in refined petroleum products, a trend driven by Cambodia’s strategic need to diversify its energy sources away from imports from Thailand in light of the border conflict.

A similar transition was observed in the dairy sector, where imports have increasingly shifted from Thai to American suppliers. Further gains were recorded across several other categories, including vehicles, plastics, paper, textile fibres, food products, and machinery.

Despite this recent uptick in American imports, Barnett underlined that a significant trade disparity still persists. In 2024, Cambodia exported USD 12.7 billion worth of goods to the U.S., while importing only USD 300 million. He attributed this disparity to two factors: the limited purchasing power of Cambodian consumers, and domestic regulatory hurdles, particularly concerning product licensing.

“A large part of the October 26, 2025, agreement on reciprocal trade between the U.S. and Cambodia is devoted to measures requiring Cambodia to improve its governance,” said Barnett. “For example, the agreement requires Cambodia to establish independent labour courts, publicise draft regulations, publicise all official fees for public services, and fight counterfeiting.” 

While these requirements were introduced during negotiations with the U.S., Barnett concluded that such improvements in governance and the rule of law would provide the greatest benefit to the Cambodian people.

Cambodia’s international trade in 2025 reached a volume of more than USD 65.25 billion, a year-on-year increase of 18 per cent, according to data released by the Ministry of Commerce on January 8, 2026. China, the United States, and Vietnam remained Cambodia’s largest trading partners in 2025.