Bangkok: The Federation of Thai Industries (FTI) is closely monitoring the US Section 301 tariffs and is urgently discussing with the Ministry of Commerce to assess the impact on specific products. Ms. Pimjai Leeissaranukul, President of the FTI, disclosed this development following the US announcement of additional import tariffs under Section 301 of the 1974 Trade Act. These tariffs target 60 economies, including Thailand, that have not effectively prohibited the import of goods produced with forced labor.
According to Thai News Agency, the new tariffs will impose an additional 12.5% on most Thai goods exported to the United States starting July 24, 2026. This measure replaces the temporary 10% tariff under Section 122, which expired on the same day. The United States, being Thailand's largest export market, imported goods worth approximately US$38,037 million from Thailand between January and May 2026-a 40.31% increase from the previous year, constituting about 23.5% of Thailand's total exports.
The FTI is concerned about the potential impact on Thai competitiveness in the US market, especially for product categories such as food, automotive parts, gems and jewelry, furniture, textiles, and garments. Each product category requires individual assessment due to exceptions for certain goods already covered under Section 232. The FTI plans to expedite discussions with the Ministry of Commerce and other relevant bodies to evaluate the scope of affected products, tax burdens, and supply chain impacts. These assessments will guide the formulation of assistance measures tailored to each industry's specific needs.
Ms. Pimjai emphasized the importance of compliance with labor laws and international standards, noting that Thai export industries are regularly assessed by global trading partners. She suggested that Thailand should enhance its traceability systems, origin verification, and raw material information to strengthen negotiations with the United States.
Addressing the US trade measures should be part of a long-term national trade strategy rather than viewed as isolated cases under Section 301. Ms. Pimjai outlined four key areas for preparation: market diversification, compliance with international standards, product innovation to maintain competitiveness, and restructuring supply chains for increased traceability.
The FTI is optimistic about the ongoing negotiations for a reciprocal trade agreement between Thailand and the United States, led by Deputy Prime Minister and Minister of Commerce, Ms. Supajee Suthamphan. The FTI is committed to collaborating with government agencies to maintain the competitiveness of Thai products and instill confidence among entrepreneurs.