Thailand Pushes Trade Deal Ahead of US Tariff Investigation

Thailand's Commerce Ministry spokesperson Karanit Nonchui revealed the progress in trade negotiations with the United States and Section 301 investigations, stating that the US is currently investigating Thailand on two key issues: the absence of measures prohibiting imports of goods produced with forced labor, and structural excess production capacity. The US has already concluded its forced labor investigation, imposing a 12.5% tariff on Thai products under Section 301, while countries that meet US criteria and either have forced labor import bans or have signed a Reciprocal Trade Agreement face a 10% rate. Some products have been exempted from the additional tariffs.

Karanit noted that the Reciprocal Trade Agreement is a crucial factor in determining US tariff rates, and Thailand is accelerating efforts to finalize such an agreement to establish a trade framework consistent with Thailand's status and enable it to compete with regional rivals. "Thailand's goal is to conclude the ART negotiations to keep combined tariff rates at 19% or no higher than competitor countries," he said. This 19% rate represents a framework Thailand previously achieved; the country previously faced reciprocal tariffs of 36% under the International Emergency Economic Powers Act before they were reduced to 19% following agreement negotiations with the US.

Regarding the structural excess capacity investigation, the US is still reviewing its findings. Thailand has been under investigation since March 2025 and has submitted data and clarifications to US authorities. Karanit stressed that current tariff comparisons must account for which investigation or measure produced each rate, as countries have different negotiating statuses and commitments with the US. He clarified that claims Thailand would be severely disadvantaged by rates above 12.5% ignore the full Section 301 process covering both investigations and varying country circumstances.

On ART negotiation progress, Karanit stated that substantive principles have been agreed, with only technical details and precise wording remaining. Thailand is rushing to finalize the agreement before the US announces its findings on the structural excess capacity investigation. Deputy Prime Minister and Commerce Minister Supachee Suthatmaphan had previously met with US Trade Representative Jamieson Greer in Washington, D.C., with both parties agreeing to have technical teams accelerate the conclusion of agreement details.