Bangkok: Thailand is advancing with four strategic measures to address US tariffs and sustain the competitiveness of its exporters. The Ministry of Commerce has reaffirmed its dedication to these measures in response to the U.S. Section 301 investigation, which led to tariffs due to a forced labor investigation. Thailand is currently subject to a 12.5% tariff in addition to the usual Mean Factor (MFN) tariff, while the investigation into structural overcapacity remains under review. These measures are designed to uphold the competitiveness of Thai exporters.
According to Thai News Agency, Dr. Kirida Paochit, Assistant Minister of Commerce, noted that the Thai government has delineated four strategies to protect trade interests, reduce business impacts, and bolster the nation's long-term competitiveness.
The first strategy involves progressing with the Agreement on Reciprocal Trade (ART) with the United States to optimize benefits for Thailand. Unlike a free trade agreement (FTA), ART is a cooperative framework aimed at creating trade balance and addressing non-tariff trade barriers. The negotiations' outcomes will influence the United States' future trade decisions.
The second strategy focuses on advancing the draft Human Rights Due Diligence (HRDD) Act and measures to prevent the import of goods associated with forced labor. This aims to elevate Thailand's trade standards to international levels and instill confidence among trading partners.
The third strategy calls for enhanced cooperation between public and private sectors to rigorously verify the origin of goods, preventing misrepresentation of Thai origin that could undermine the credibility of Thai exports globally.
The fourth strategy involves readying measures to support and improve the competitiveness of businesses impacted by U.S. trade measures, enabling their adaptation and continued operation.
Dr. Kirida further stated that Thailand has submitted evidence to the Office of the United States Trade Representative (USTR) to affirm that Thailand enforces measures against forced labor, appropriately utilizes industrial production capacity, and refrains from market-distorting subsidies. She also confirmed that Thailand's production and investment promotion policies align with World Trade Organization (WTO) principles. The government will continue monitoring the investigation's progress and implement measures to safeguard national interests and Thai exporters' competitiveness.
The U.S. investigation under Section 301 of the 1974 Trade Act focused on the absence of a ban on imports linked to forced labor and structural excess capacity. As of July 24, 2026, the U.S. has begun implementing tariffs, classifying trading partners into four groups based on tariff percentages. Thailand, along with China, Vietnam, and the Philippines, falls under the group subject to a 12.5% tariff combined with the MFN tariff.
The investigation into structural overcapacity is ongoing, with no official announcement date set by the United States. Thai businesses are advised to closely monitor the situation.