Thailand rushes US talks over new 12.5% tariff

Thailand is accelerating trade talks with the United States after Washington imposed an additional 12.5% import tariff on Thai goods over forced-labour import controls.

The new charge took effect on 24 July 2026 under Section 301 of the US Trade Act of 1974, replacing a 10% measure under Section 122 which expired the same day. More than half the value of Thai exports to the US is exempt, according to the Ministry of Commerce.

Deputy Prime Minister and Commerce Minister Suphajee Suthumpun, who heads Thailand's negotiating team, said Thailand was seeking a mutually beneficial Agreement on Reciprocal Trade, or ART, with the US.

She said Bangkok's priority was not simply to conclude negotiations quickly, but to secure a balanced deal that did not harm public health, national security, the public interest or the government's ability to set policy.

More than 2,000 Thai products exempt

Assistant Commerce Minister Kirida Bhaopichitr said the US had issued its final determination on 23 July, US local time, covering more than 60 trading partners.

Thailand, along with 37 other countries including Vietnam, the Philippines and China, faces an additional 12.5% tariff on top of normal most-favoured-nation, or MFN, duties. Other countries are subject to a 10% rate.

However, 2,120 Thai product lines have been excluded from the new 12.5% tariff. They include integrated circuits, hard disk drives, aircraft parts, natural rubber, rubber sheets and blocks, cassava starch, fresh and processed pineapple, fresh and dried fruit, fresh coconuts and coconut water, and cane sugar.

Kirida said the exclusions represented more than half of the value of Thai goods exported to the US, and that Thai products should therefore remain competitive in the market.

Another US investigation remains open

The US is still investigating Thailand and 15 other trading partners under Section 301 over structural excess production capacity. No tariff rate has yet been announced in that case.

The Commerce Ministry said it was monitoring the investigation closely while pushing to complete the ART negotiations. Thailand may need more time than some regional countries because of sensitive matters and domestic legal limits, particularly those involving public health and safety, it said.

The ministry is also preparing support measures for businesses potentially affected by US trade action. These include low-interest loans to improve liquidity, tax support for exporters, lower transport costs, more efficient logistics management, and measures to encourage the use of domestic materials and components.

Thai Chamber of Commerce chairman Poj Aramwattanont said Thai exporters remained in broadly similar competitive conditions to most rivals, which face comparable tariffs. He urged faster ART negotiations and stronger labour and supply-chain standards.

Picture courtesy of ThaiRath

Join the discussion?

25 July 2026

View full article