Cambodia’s Apparel Exports to U.S. Slip Amid Tariff Turbulence

Cambodia shipped fewer apparel goods to the U.S. from January to July 2025 as American tariff shifts unsettled orders and squeezed margins. Exporters say frequent duty hikes and rollbacks disrupted planning and forced buyers to delay or scale down shipments.

The Trump administration’s “Liberation Day” tariff package pushed duties on Cambodian garments to nearly 49%, one of the steepest rates globally. That move eroded Cambodia’s cost advantage and encouraged some U.S. clients to source alternatives in Vietnam and Central America.

Industry insiders warn that factories now juggle debt and shrinking orders, leaving workers vulnerable. Several manufacturers already cut overtime and froze new hiring as they brace for prolonged tariff pressure.