Cambodian Garment Workers Fear Job Losses Amid Potential 36% US Tariff
(File Photo | TheTrendingPeople)
Phnom Penh: Garment workers across Cambodia are growing increasingly anxious about their future as the United States considers imposing a steep 36% tariff on Cambodian exports. The tariff proposal, introduced by US President Donald Trump, could severely impact Cambodia’s key garment industry, which heavily relies on exports to the American market.
Taking a break from her shift at a Phnom Penh factory that produces underwear for Western brands, 38-year-old Im Sothearin expressed deep concern. "We’re already earning so little. If this tariff is applied, we will be the ones to suffer," said the mother of three, who earns approximately $300 a month.
Why Cambodian Workers Are Worried
Cambodia is one of the largest producers of low-cost clothing for international markets, particularly the United States. In 2024, the country exported around $10 billion worth of goods to the US, with garments making up the bulk of that trade.
Earlier this year, the White House announced a proposed 49% tariff on Cambodian imports as part of what President Trump called a "Liberation Day" move to pressure foreign governments on trade. That rate has since been revised to 36%, and the US has given Cambodia until August 1 to negotiate a trade deal to avoid the increase.
However, the reduction in the proposed tariff has done little to ease the worries of factory workers, many of whom are already struggling to meet basic needs.
“I hope the US lowers the tariff even more,” said 28-year-old Sreymom, who is currently pregnant and has been working in garment factories for 11 years. “If the cost of exporting goes up, factories may shut down or lay off workers.”
Impact on Factories and Families
Cambodia’s economy is closely tied to the textile and garment sector, which employs hundreds of thousands, mainly women. Many factories are owned by Chinese investors, a factor that has complicated trade relations. The US has previously accused Cambodia of helping Chinese companies bypass higher tariffs imposed on China by routing goods through its territory.
Commerce Ministry spokesperson Penn Sovicheat, responding to the original tariff announcement in April, called the move “not reasonable” and warned it could have unfair consequences for Cambodian workers and businesses.
Yi Mom, 47, who has spent over 20 years in the industry, fears the long-term impact. “If the US imposes this tariff, we might lose our jobs. We’ll earn less and won’t be able to take care of our families,” she said.
Cambodia Yet to Respond Officially
While Cambodian officials have not issued a formal statement on the revised 36% tariff, they are currently engaged in fast-paced negotiations to reach a trade agreement before the deadline. For now, the country continues to pay a 10% standby rate on its exports to the US.
Trade experts warn that if no deal is reached by August 1, the higher tariff could lead to factory closures, job losses, and lower wages for workers across the country.
With just weeks left for negotiations, thousands of families in Cambodia are left hoping that an agreement will be reached — one that can safeguard their livelihoods and protect the backbone of the nation’s export economy.