Washington has exempted 2,120 Thai export products from an additional 12.5% tariff under Section 301 of the US Trade Act of 1974, accounting for more than half the value of Thailand’s exports to the United States, the Commerce Ministry said yesterday.
Exempted products include integrated circuits, hard disk drives, aircraft parts, natural rubber, rubber sheets and blocks, tapioca starch, fresh and processed pineapple, fresh and dried fruit, fresh coconuts and coconut water, and cane sugar.
Commerce Minister Suphajee Suthumpun, who leads Thailand’s negotiations with Washington, said the government was working urgently to secure a mutually beneficial agreement while preserving the longstanding trade relationship between the two countries.
She said Thailand’s goal was not merely to conclude talks quickly but to reach a balanced agreement that would not compromise public health, national security, the public interest or the government’s policymaking authority.
The United States launched the Section 301 investigation into Thailand over two issues: structural excess production capacity and the alleged failure to prohibit imports of goods produced using forced labour.
The new measure replaces the previous 10% tariff imposed under Section 122, which expired yesterday.
On Thursday, Washington issued its final determination, imposing retaliatory tariffs of 10% and 12.5% on affected countries.
Thailand is among 38 countries — including Vietnam, the Philippines and China — subject to the additional 12.5% duty on products outside the exemption list.
Vinit Visessuvanapoom, director-general of the Fiscal Policy Office, said the higher tariffs were unlikely to have a significant impact on the Thai economy.
He said the Commerce Ministry was negotiating with the United States over allegations of excess production capacity, including claims that Thailand imports goods from other countries for re-export to the US.
Finance Minister Ekniti Nitithanprapas said the government was assessing the impact of the tariffs while coordinating with the Commerce Ministry.
As many major export products remain exempt, he said the overall effect should be limited, although some industries would face higher costs.
Officials will work with the private sector to identify the hardest-hit industries and determine appropriate support, including financial assistance and targeted measures to help exporters remain competitive.
Mr Ekniti said concluding negotiations with Washington was the government’s top priority, noting that several countries that had completed negotiations, particularly under the Indo-Pacific Economic Framework, had secured a lower 10% tariff rate.
He said the US focus on forced labour should be seen as an opportunity for Thailand to strengthen labour standards and production processes, improving competitiveness while reducing exposure to future trade barriers.