Tariff Increase on Cambodian Imports Highlights Rising Trade Deficit with the U.S.

The administration of President Donald Trump has taken a bold step in economic policy by announcing an increase of 49% on tariffs applied to goods imported from Cambodia. This decision is primarily motivated by the growing trade deficit between the United States and Cambodia, a gap that has drawn the administration’s scrutiny.

As highlighted in a press release detailing the outcomes of the April 4 Cabinet meeting, ‘This is why the administration announced the imposition of reciprocal tariffs on countries with which the U.S. has a trade deficit.’ The trade relationship illustrates that Cambodia exports significantly more to the U.S. than it imports, creating a disparity that officials aim to balance through these tariff increases.