Cambodia factories “absolutely no” return to us

Among the main goals for the president Donald Trump and his administration in the application of trading partners with steep tariffs returns production potential in the US even if it comes for a price Short -term market and economic coercion. But in Cambodia, the Asian country suffered from the highest tariff speed of anyone in the new trading plan, this purpose is unlikely.

While the 49% tariff rate, which the Trump administration is placed on Cambodian goods, will lead to an existential crisis for Cambodian factories, and workers who are already in the low level of global income distribution, the reshuffle of production in the US will not take place, reports the trade group.

“They are absolutely not going to return to the US,” said Case Barnett, president of the US Chamber of Commerce in Cambodia, a trading association representing US companies producing in Cambodia. “I do not imagine that Americans want to sit down and sew a couple of bedrooms for many hours,” Barnet said.

The barnet said the manufacturers in Cambodia are considering other countries to mitigate tariffs, but the US is not among the options. Some companies seek to transfer their supply networks to Egypt, Africa south, India and Indonesia. Other companies are moving slower, thinking that the tariffs can be reversed.

According to Barnet, the factories in Cambodia are not in a good position, looking for ways to survive over the next few months.

“Working factories here, in Cambodia, simply cannot continue to work with an additional 49%tariff. They cannot survive and seek alternatives,” he said.

Until, at least, new orders have been placed. “There is a termination of orders. Everyone faces uncertainty, and they want to wait a little to learn how dust settles,” the barnet added.

The Cambodia Government is working on a number of pressure softening steps, such as fiscal policy, including tax credits.

Under Armour, Rawlings Sporting Grods, Lululemon, Black & Decker, Hugo Boss, Heaarth & Home, Eddie Bauer, Dollar General, Diageo, ASICS, Adidas and Bass Pro, are one of the trading companies that import from Camboji. There is a permanent list of items imported from clothing to shoes, travel goods, bicycles, agricultural products, furniture, solar panels, tires and kitchen cabinets.

Wait for a pause in the decision -making

Andrei Quinn-Barabanov, an industry supply practice, leads to Moody’s, says that even if companies produce as little cheap as possible, the supply network relocation is a major investment.

“Investments with the supply chain should be longer, and if you have great uncertainty as this, you are unlikely to make these decisions. The companies will wait to find out what will be the tariff from other countries, as well as the restrictions they will make to US companies. You will have very little decision -making.”

The White House claims that Cambodia tariffs in the US reach 97%, a lawsuit challenged by the country, as well as several tariff data sources, including the World Trade Organization. The economic complex, which also studies trade data, says that some consumer products such as snacks, cosmetics and cars can see much higher tariffs than average, up to 35%in Cambodia. The average tariff in the US in Cambodian goods is 2.6%.

The administration continues to claim that the return of production in the US will eventually lead to a greater profit for the US “If we set a tariff wall, the ultimate goal will return jobs to the US, but in the meantime we will collect significant tariffs,” Finance Minister Scott Igred said on Tuesday at CNBC. “If we are successful, the tariffs will be in a sense of melting ice cubes, because you accept income because production facilities are built in the US, and there should be some level of symmetry between the taxes that we start taking from a new branch of wages when tariffs are reduced.”

Andre K. Winter, Founder and Director of Consultation Network and Planned Company Hudsonwinters, Recently said CNBC He doubts that the companies will return the production in the US in a hurry. “This trade war is not an incentive to return to the US,” said Winter. “Companies will look for other countries that get into lower tariffs. If I cry 40% in Vietnam and I can get a 20% tariff to another country, I will go there because in the end it is still cheaper than going to America.”

Barnet said Many companies have warned.

“Unfortunately, this will push the prices for the American consumer,” he said. “Cambodia helps American families buy this clothing at an affordable price. These tariffs are just going to raise US families and do not bring production to the United States”

Return production to the US – this Not the only reason for tariffs on TrumpAccording to President Trump and his trading advisers, reducing the country’s trade and debt deficit, and provides tax reduction, also decisively, and this became clear when countries start offering tariff concessions.

Prime Minister Cambodia Sent a letter to Trump administration In the last days, which outlines significant declines of tariff tariffs for US goods. Vietnam suggested taking the US import tariffs up to 0%, the proposal noted by Trump, but the Trump administration later noted that the administration would be enough for the administration to raise new levies.

Trade and “deception” deficit is the same important, said the White House trade advisor Peter Navaro on Monday, in an interview with CNBC, rejecting the prerequisite for Vietnamese’s proposal.

Compared to the Cambodia trading deficit, it takes low on the list compared to many international production countries. Trading in USA in Cambodia amounted to approximately $ 13 billion in 2024, According to the US Trade Office. Exports of US goods to Cambodia in 2024 amounted to $ 321.6 million, which is 4.9% ($ 14.9 million) compared to 2023, which were imported from Cambodia in 2024 by 9.3% ($ 1.1 billion) since 2023. The US trading deficit amounted to $ 12.3 billion in 2024 and not at the top of the deficit.

The largest trade deficit with us, the country

(to $ billion, as of December 2024.)

1. China (-295.4)
2. Mexico (-171.8)
3. Vietnam (-123.5)
4. Ireland (-86.7)
5. Germany (-84.8)
6. Taiwan (-73.9)
7. Japan (-68.5)
8. Korea, South (-66)
9. Canada (-63.3)
10. India (-45.7)

Spring: US Census Bureau

Trump Advisers used this term “Exchange Weight” To discuss a broader philosophy behind the aggressive tariff position and claims that other countries will have the cost of tariffs. Many economists have shown the risks associated with getting into some of the poorest countries in the world with high tariffs. Cambodia is one of the 11 countries that make up a small part of the US trade deficit but exports to the US, which is more than 10% of its GDP, the Global Development Center reports. “For people who work in clothing, the conditions are tough, but wages offer these jobs, which is a real opportunity, especially for women,” the statement said.

Barnett repeated these fears, saying that tariff rates would only increase poverty in Cambodia, lead to job losses and further expand the trade deficit.

“There’s a panic there, and it is tragically because there are 1 million poorest people in the world, and many women who are trying to reduce the ends. Their monthly salary is about $ 300,” Barnet said. “Cambodia is located between the rock and heavy place.”