Cambodian garment workers fret Trump's new tariff threat

Straits Times

a day ago

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While the levy is lower than the original eye-watering figure, it has done little to allay anxieties.
PHNOM PENH - As Cambodian garment workers took breaks from toiling in sweltering factories on Tuesday, they feared for their jobs after US President Donald Trump's
threat to impose a 36 per cent tariff .
'I beg the US to reduce the tariff for the sake of workers in Cambodia,' 38-year-old Im Sothearin told AFP as she rested from her work in an underwear factory in the capital Phnom Penh.
'If they charge a high tariff, it is only workers who are going to suffer,' said the mother-of-three who earns only US$300 (S$383) a month.
'Factories might be closed or workers will have their wages lowered, or be forced to work faster.'
Cambodia – a major manufacturer of low-cost clothing for Western brands – was among the nations hardest hit by
Mr Trump's 'Liberation Day' blitz of tariff threats in April.
The US president originally outlined a 49-per cent rate if Cambodia failed to broker a deal with Washington. On July 7, he lowered it to 36 per cent and extended the negotiation deadline to August 1.
While the levy is lower than the original eye-watering figure, it has done little to allay anxieties.
'If the tariff is that high, companies won't have money to pay,' 28-year-old pregnant worker Sreymom, who goes by only one name, told AFP as she bought fruit on her lunch break.
'I am worried that we won't have jobs to do,' the 11-year veteran of the factory floor said. 'I want the tariff to be reduced more.'
Cambodia's chief negotiator in talks with Washington called the reduction in the proposed rate – announced in a letter among more than a dozen Trump despatched to trade partners – a 'huge victory'.
'We are so successful in negotiations,' Deputy Prime Minister Sun Chanthol told reporters in Phnom Penh. 'We still have a chance to negotiate further to reduce the tariff rate more.'
But back in April, commerce ministry spokesman Penn Sovicheat told AFP that harsh US tariffs on his country were 'not reasonable'.
Cambodia said it had about US$10 billion in exports to the United States in 2024, mainly garment products.
The nation has been paying a 10-per cent standby rate as negotiators rush to make a deal.
Many factories in Cambodia are Chinese-owned. The White House previously accused the kingdom of allowing Chinese goods to stop over on the way to US markets, thereby skirting steeper rates imposed on Beijing.
Ms Yi Mom has had a two-decade career in the garment industry. But she frets it may be ended if Cambodia fails to soften the blow threatened by the United States.
'I fear that the high tariff will affect factories and will result in fewer jobs for workers,' said the 47-year-old.
'Then we will have low wages and will not be able to support our families.' AFP