Cambodia Stalled border war and US tariffs threaten garment industry

Tens of thousands of Cambodian migrant workers who have fled Thailand since border tensions began were already facing an uncertain future.

- Coby Hobbs

Now, as they re-enter a precarious job market braced for US tariffs, they are struggling to find work.

A 36% export tax imposed on Cambodia by Donald Trump is due to come into effect tomorrow. Trade talks between the US and Cambodia resumed after a ceasefire was agreed with Thailand following five days of border fighting, but on the eve of the deadline for setting rates no new deal had been agreed.

The tariff is likely to put hundreds of thousands of jobs at risk, particularly in Cambodia's garment, footwear and travel goods (GFT) sector, which employs a million people, mostly women, according to the UN, and underpins the country's formal economy.

"We are talking about a substantial loss," said Massimiliano Tropeano, a garment sector consultant and member of EuroCham Cambodia. "Factories supplying American brands will be substantially affected, with very little room to absorb the 36% added costs." He believes that up to 150,000 GFT jobs could be lost.

The US is the largest single-country buyer of GFT goods. In 2024, Cambodia exported $12.7bn (£9.6bn) of goods to the US, while importing just under $322m - a trade surplus that put it in the crosshairs of Trump's revived tariff campaign. GFT goods made up more than half of those exports.