Cambodia's furniture manufacturing sector continues to face pressure despite the United States reducing tariffs on Cambodian exports to "19 percent" from an initial "49 percent". Industry stakeholders warn that the high rate threatens competitiveness in a market where profit margins are already thin.
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Furniture, including upholstered seats and wooden items, is a key export to the US, generating hundreds of millions of dollars annually. However, manufacturers fear a "source shift" as American retailers seek suppliers in lower-tariff markets to protect their margins.
An investor in the sector said that unlike other industries, profits in furniture manufacturing are "absorbed largely by wholesalers and retailers," leaving Cambodian producers vulnerable.
American importer Ben Knepler of True Places highlighted the instability of trade policies, calling it a "wheel of misfortune" after moving production from China to Cambodia to avoid tariffs, only to face new levies within months.
Industry veteran Chris Lehnes noted that the tariffs hit as the sector faces growing competition from e-commerce giants like Wayfair and Amazon, making it harder for traditional retailers to remain competitive. Without market diversification, stakeholders fear the reduced tariff remains "a big number" threatening the Kingdom's furniture export growth.
Source: www.khmertimeskh.com
