Bangkok: The Ministry of Commerce has clarified that the United States has imposed a 12.5% tariff on imports from Thailand and 37 other countries due to issues related to forced labor. Despite this, more than half of Thailand's export products remain exempt from these tariffs, according to the ministry's explanation.
According to Thai News Agency, the Ministry of Commerce detailed that the US invoked measures under Section 301 of the 1974 Trade Act following an investigation into trading partners regarding structural excess capacity and the failure to effectively prohibit goods produced with forced labor. As a result, a 12.5% tariff has been implemented on imports from Thailand, Vietnam, the Philippines, and China, effective July 24, 2026, US time. This new measure replaces the previous Section 122 tariff of 10%.
The exemption covers 2,120 Thai products, including integrated circuits, hard disk drives, aircraft components, rubber products, cassava starch, and various fruits, which represent more than half of Thailand's total exports to the US. Deputy Prime Minister and Minister of Commerce, Supachie Suthamphan, emphasized the importance of negotiations on reciprocal trade agreements to safeguard national interests and assist businesses in diversifying export markets.
Ms. Supajee, leading discussions with the United States, stated that Thailand aims to reach a mutually beneficial resolution while maintaining trade relations. The focus is on securing a balanced agreement that does not compromise public health, national security, or the government's policy-making authority. Dr. Kirida Paochit, Assistant Minister of Commerce, noted that the tariff increase is only a slight rise from the previous rate and that Thai products are expected to remain competitive.
The Ministry of Commerce is also monitoring the Section 301 investigation into structural overcapacity, which includes 16 countries, as the US has yet to announce the results. Efforts are underway to negotiate an Agreement on Reciprocal Trade to maximize benefits for both nations.
Ms. Supajee highlighted that negotiations may be prolonged due to sensitive issues and domestic legal constraints, especially concerning health and public safety. Thailand's approach will prioritize the nation's overall interests, balancing short-term impact mitigation with long-term economic competitiveness.
To mitigate the tariff impact, the Ministry of Commerce is preparing measures such as low-interest loans, tax assistance for exporters, logistic cost reductions, and promoting domestic raw material use. Additionally, efforts are being made to expand into new markets and diversify trade risks, aiming to reduce dependency on a single market and enhance the competitiveness of Thai businesses amid global economic uncertainties.