US Slaps 12.5% Tariff on Thailand Over Forced Labour
The US imposed a 12.5% tariff on Thai imports, citing Thailand's lack of adequate forced labour enforcement laws, placing it in a higher tariff tier than countries with stricter protections.
The United States has announced new tariffs on imports from 60 trading partners, citing concerns over forced labour in global supply chains. Thailand will face a 12.5% tariff under the new measures.
The Office of the United States Trade Representative (USTR) said it is imposing the tariffs under Section 301 of the Trade Act, arguing that the affected countries lack sufficiently robust laws or enforcement measures to prevent the import of goods produced with forced labour. The USTR said such practices undermine supply chain integrity and create unfair competition for US manufacturers.
The measures took effect on July 24, replacing temporary tariffs previously imposed under Section 122 of the Trade Act, which grants the US president emergency authority to levy import duties. The Section 122 tariffs, set at 10%, were introduced by the Trump administration after the US Supreme Court struck down the president's broader tariff programme affecting trading partners worldwide.
Under the new framework, the USTR has divided affected trading partners into two groups. The first group, subject to a 10% tariff, includes countries that already prohibit imports made with forced labour or have reciprocal trade agreements with the United States, such as Canada, the United Kingdom and the European Union.
Thailand has been placed in the second group, which is subject to a 12.5% tariff because it does not yet have a legal framework or cooperation mechanism that meets US requirements on forced labour enforcement. According to the USTR, countries in this category lack import bans or equivalent legal measures targeting goods produced with forced labour. Besides Thailand, the 12.5% tariff also applies to China, Japan and India.
The move will have significant implications for Thailand, as the United States is the country's largest export market. The USTR has previously raised concerns about labour practices in Thailand's fishing and seafood industries, while acknowledging improvements in worker registration, vessel inspections and supply chain traceability.
Despite those reforms, the USTR said Thailand has yet to adopt legislation prohibiting the import of goods produced with forced labour, placing it in the higher tariff category under the new Section 301 measures.
