Bangkok: U.S. trade policies continue to pose significant challenges for Thai exporters, as the United States employs measures under Section 301 of the Trade Act of 1974 to scrutinize trading partners. Currently, several Thai goods are subjected to an additional 12.5% tariff, with further investigations looming.
According to Thai News Agency, the "Analyzing the Global Economy" segment of the CEO Vision Plus program recently featured a discussion with Dr. Kirida Paochit, Assistant Minister of Commerce. The conversation centered on the impact of US tariffs on Thai SMEs and strategies for mitigating these risks by negotiating and exploring new markets.
Initially, under the Reciprocal Tariff announced by President Donald Trump's administration, Thailand faced a 36% tariff, which was later reduced to 19% after negotiations, aligning with regional competitors. An Agreement on Reciprocal Trade (ART) between Thailand and the United States further established tariff frameworks and market openings. However, a 2026 U.S. Supreme Court ruling restricted the president's authority to impose such tariffs, prompting reliance on Section 301 to continue the trade policy.
The U.S. has opened investigations into 60 economies, including Thailand, concerning forced labor laws and structural excess capacity. Thailand has been defending its position by providing data indicating that private sector investments did not result in excess production capacity, contrary to U.S. allegations.
Dr. Kirida emphasized Thailand's goal to maintain a fair tax rate, comparable to its competitors like China and Vietnam, to prevent any disadvantage in the US market. Although Thai SMEs do not directly bear increased costs from US tariffs, their competitiveness could be affected due to higher selling prices in the US market.
The Thai government has identified over 2,000 Thai products exempt from Section 301 tariffs, representing about 60% of Thai exports to the U.S. Efforts to secure further exemptions, particularly for rubber products and processed agricultural goods, continue.
Dr. Kirida highlighted the necessity for Thai SMEs to maintain quality and consistency, ensuring that tariff differences do not erode market share. The Ministry of Commerce is also prioritizing market diversification, targeting regions such as the Middle East, Africa, and South Asia to reduce reliance on any single market.
As global trade rules evolve, the focus for Thai enterprises is not solely on tariff rates but also on maintaining competitiveness through quality, diversification, and exploration of new markets. The dynamic trading landscape demands adaptability from Thai businesses to sustain their global presence amidst increasing trade restrictions.
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