US Tariffs on 60 Countries: Thailand Faces 12.5% Under Section 301

Post Today•Economy•4d ago

Reader Briefing

The US is preparing to impose tariffs on over 60 countries, including Thailand at 12.5%, under Section 301 of the Trade Act, citing failures in addressing forced labor.

•The US Trade Representative (USTR) plans to use Section 301 to levy import duties on approximately 60 countries due to concerns over forced labor.
•Thailand is slated to face a 12.5% tariff, though this is lower than previous reciprocal tariffs.
•The move is seen as a new strategy by the US to exert trade pressure, potentially impacting Thai exports and the Stock Exchange of Thailand (SET).
•Thailand is advised to strengthen labor laws and local content initiatives to mitigate risks.
•Affected companies, particularly those with significant US revenue like ITC and TU, may experience amplified pressure.

Overview

•The US is preparing to use Section 301, with public hearings scheduled for July 7, 2026.
•The US Trade Representative (USTR) is preparing to use Section 301 to impose additional import tariffs on over 60 countries.
•The tariffs are due to an assessment that these countries have failed to address forced labor issues and prevent the import of goods produced by forced labor.
•Thailand will face a 12.5% tariff. The EU, Canada, Mexico, Taiwan, and Malaysia will face a 10% tariff.
•Global tariffs under Section 122 at 10% are scheduled to expire around July 24, 2026.
•The 12.5% tariff is viewed as having limited impact on Thai exports, as it's lower than previous tariffs, and exporters have already adapted.
•Companies with high revenue from the US, such as ITC (50%), TU (39%), STGT (20%), and STA (15%), may face greater pressure.
•Thailand should urgently strengthen labor laws, enhance transshipment checks, and promote the use of local content to increase domestic value and credibility.

Full article content is available on the original source.

Read on Post Today (Thai Version)View in Google Translate

Source: Post Today (Original)

Key Quotes

Unknown

"The US divides countries to be taxed into two levels."

สหรัฐฯ แบ่งกลุ่มประเทศที่จะถูกเรียกเก็บภาษีออกเป็น 2 ระดับ

Unknown

"Section 301 is likely to be used as a new tool to maintain US trade pressure."

Section 301 จึงมีแนวโน้มถูกใช้เป็นเครื่องมือใหม่ในการรักษาแรงกดดันทางการค้าของสหรัฐฯ

Unknown

"Therefore, Section 301 is likely to be used as a new tool to maintain US trade pressure."

ดังนั้น Section 301 จึงมีแนวโน้มถูกใช้เป็นเครื่องมือใหม่ในการรักษาแรงกดดันทางการค้าของสหรัฐฯ

Key Entities

Place

United States(สหรัฐฯ)ℹ️

The country enacting new trade tariffs under Section 301.

Thailand(ประเทศไทย)ℹ️

A country targeted for new import tariffs by the US under Section 301.

China(จีน)ℹ️

A country that will face 12.5% tariffs from the US under Section 301.

Japan(ญี่ปุ่น)ℹ️

A country that will face 12.5% tariffs from the US under Section 301.

India(อินเดีย)ℹ️

A country that will face 12.5% tariffs from the US under Section 301.

South Korea(เกาหลีใต้)ℹ️

A country that will face 12.5% tariffs from the US under Section 301.

European Union (EU)(สหภาพยุโรป (EU))ℹ️

An economic and political union that will face 10% tariffs from the US under Section 301.

Canada(แคนาดา)ℹ️

A country that will face 10% tariffs from the US under Section 301.

Mexico(เม็กซิโก)ℹ️

A country that will face 10% tariffs from the US under Section 301.

Taiwan(ไต้หวัน)ℹ️

A territory that will face 10% tariffs from the US under Section 301.

Malaysia(มาเลเซีย)ℹ️

A country that will face 10% tariffs from the US under Section 301.

Organization

Office of the United States Trade Representative (USTR)(สำนักงานผู้แทนการค้าสหรัฐฯ)ℹ️

The US agency preparing to implement new import tariffs under Section 301.

KTBST Securities (KTBST)(บล.บัวหลวง)

A financial advisor providing analysis on the impact of US trade measures on Thailand.

Stock Exchange of Thailand (SET)(SET)ℹ️

The Thai stock market analyzed for potential impact from US trade policies.

ITC

A company identified as potentially facing significant pressure due to a high proportion of revenue from the US.

STGT

A company identified as potentially facing significant pressure due to a high proportion of revenue from the US.

STA

A company identified as potentially facing significant pressure due to a high proportion of revenue from the US.

InnovestX Securities(บล.อินโนเวสท์ เอกซ์)

A financial advisor providing an outlook on the short-term pressures from US tariff policies.

Law

Section 301(มาตรา 301)ℹ️

The US trade law being used to impose new import tariffs on over 60 countries, including Thailand.

Global tariff

A type of US tariff with a limited effective period and a 10% rate.

Section 122

The legal basis for Global tariffs, which has a limited timeframe.