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US Tax Talks: USTR proposes 12.5% duty on forced labor issue

US Tax Talks: USTR proposes 12.5% duty on forced labor issue

Matichon•Economy•4h ago

Reader Briefing

The USTR has proposed an additional 12.5% tariff on countries lacking measures against forced labor, following investigations concerning excess capacity and forced labor.

  • •The USTR has proposed a 12.5% additional duty on countries without clear strategies to address forced labor.
  • •This proposal stems from Section 301 investigations into 'Excess Capacity' and 'Forced Labor'.
  • •Thai officials have provided statements and documents, with the Ministry of Commerce monitoring developments.

Overview

  • •On June 3, 2026, the Prime Minister ordered the Ministry of Commerce to expedite tax negotiations with the US.
  • •On May 26, 2026, the Thai Trade Office in Washington reported that USTR spoke at a seminar regarding trade strategy.
  • •USTR stated that US trade strategy involves continued aggressive import tariffs as long as the US faces substantial trade deficits.
  • •The US plans to potentially re-impose temporary import tariffs under Section 122 after their expiration on July 24, 2026.
  • •USTR stated that Section 301 investigations are crucial for determining future retaliatory measures.
  • •On June 2, 2026, USTR announced findings under Section 301 regarding the lack of import bans on goods from forced labor, affecting 60 countries including Thailand.
  • •USTR proposed an additional duty of 12.5% for countries without a strategy to solve forced labor issues.
  • •Public hearings for those wishing to testify are scheduled, with submission of requests by June 22, 2026, and comments by July 6, 2026, leading to public hearings on July 7, 2026.

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Source: Matichon (Original)

Key Quotes

Aroda Fuangtong
"USTR highly values the ongoing Section 301 investigation (cases of Excess Capacity and Forced Labor), which will serve as data for determining retaliatory measures."
USTR ให้ความสำคัญอย่างมาก กับการไต่สวนภายใต้มาตรา 301 ที่กำลังดำเนินอยู่ในขณะนี้ (กรณี Excess capacity และ Forced labor) ซึ่งจะเป็นข้อมูลประกอบการกำหนด มาตรการตอบโต้ต่อไป
Aroda Fuangtong
"USTR stated at a seminar, summarizing key points: US trade strategy involves continued aggressive import tariffs as long as the US faces substantial trade deficits."
USTR ได้กล่าวในงานเสวนา โดยสรุปสาระสำคัญ ดังนี้ ยุทธศาสตร์การค้าของสหรัฐฯ นั้น สหรัฐฯ จะใช้มาตรการภาษีนำเข้าในเชิงรุกต่อไป ตราบใดที่ สหรัฐฯ ยังคงประสบปัญหาการขาดดุลการค้าเป็นมูลค่ามหาศาล

Key Entities

Organization

Ministry of Commerce(พณ.)ℹ️
The Thai government organization responsible for trade and commerce, involved in tax negotiations with the US.
United States Trade Representative(USTR)ℹ️
The US government agency responsible for developing and recommending United States trade policy.
Ministry of Interior(กระทรวงมหาดไทย)ℹ️
A Thai government ministry, with the Prime Minister also serving as its minister.
Department of Foreign Trade (DFT)(กรมการค้าต่างประเทศ(คต.))
A department within Thailand's Ministry of Commerce responsible for foreign trade.
Thai Trade Office in Washington, D.C.(สำนักงานพาณิชย์ในต่างประเทศ ณ กรุงวอชิงตัน (สพต.วอชิงตัน))
The Thai Trade Office located in Washington, D.C., reporting on US trade developments.
U.S. – China Board of Trade
A proposed body or initiative by the USTR to manage trade relations and identify non-sensitive goods for potential tariff reductions between the US and China.

Place

United States(สหรัฐ)ℹ️
The country involved in trade negotiations and proposing new tariffs.

Person

Anutin Charnvirakul(นายอนุทิน ชาญวีรกูล)ℹ️
The current Prime Minister and Minister of Interior of Thailand, who ordered expedited tax negotiations with the US.
Aroda Fuangtong(นางอารดา เฟื่องทอง)
Director-General of the Department of Foreign Trade (DFT) of Thailand's Ministry of Commerce, providing updates on US tax negotiations.

Policy

Trump Tariffs(ภาษีทรัมป์)
A term referring to tariffs imposed by the Trump administration, relevant to ongoing US trade negotiations.
ART
Reciprocal Trade Agreement, a type of trade agreement the US is pressuring countries to conclude or adhere to.

Law

Section 122(มาตรา 122)
A section of US trade law that allows for temporary import tariffs, potentially to be re-imposed.
Section 301(มาตรา 301)ℹ️
A section of US trade law used for investigations into unfair trade practices and to impose retaliatory measures.
USMCAℹ️
The United States-Mexico-Canada Agreement, a free trade agreement whose review is mentioned in the context of US trade policy.
IEEPAℹ️
International Emergency Economic Powers Act, mentioned as a potential precursor or comparison to Section 301 actions.

Issue

Excess capacity
A trade issue being investigated under Section 301 by the USTR.
Forced laborℹ️
A critical labor issue being investigated by the USTR under Section 301, leading to potential tariffs.