Thailand hopes to avoid US forced labor tariffs

MGR Online•Economy•3d ago

Reader Briefing

Twenty-five US states have sued the US government to suspend forced labor import tariffs affecting 60 countries, including Thailand.

•The Department of Foreign Trade reports that 25 US states are suing to stop forced labor tariffs of 10% and 12.5%.
•The US announced a 12.5% import tariff on Thai goods starting July 24, 2026, citing forced labor under the Trade Act 1974.
•Thailand is listed in Tier 2 of a White House report regarding structural excess capacity and links to Chinese supply chains.
•Thai officials will negotiate with the US from August 27 to September 1, 2026, to conclude an Agreement on Reciprocal Trade.

•25 US states led by the Democratic Party filed a lawsuit with the US Court of International Trade to suspend new import tariffs of 10% and 12.5% on 60 countries.
•The lawsuit claims the forced labor justification is an attempt to bypass previous court rulings and constitutes an abuse of power.
•Arada Fuangthong of the Department of Foreign Trade assesses that forced labor tariffs may be unenforceable and eventually canceled.
•The White House report 'The Great Transshipment Scam' published on August 13, 2026, identified Thailand in Tier 2 for structural excess capacity linked to Chinese supply chains.
•If both forced labor and structural excess capacity tariffs are applied, 28% of Thai export items to the US will be affected.
•The Department of Foreign Trade believes the combined tax rate for both cases likely will not exceed 19%.
•The Department of Foreign Trade and a Thai team will travel to negotiate with the US from August 27 to September 1, 2026.
•Thailand aims to finalize the Agreement on Reciprocal Trade during the upcoming face-to-face negotiations.

Full article content is available on the original source.

Department of Foreign Trade(กรมการค้าต่างประเทศ)

A government agency under the Ministry of Commerce acting as the defending body for Thai trade interests.

Ministry of Commerce(กระทรวงพาณิชย์)ℹ️

The ministry overseeing the Department of Foreign Trade.

US Court of International Trade(ศาลการค้าระหว่างประเทศ)ℹ️

The court where 25 US states filed a lawsuit to suspend import tariffs.

Democratic Party(พรรคเดโมแครต)

The political party leading the 25 US states in the lawsuit against the US government.

White House(ทำเนียบขาว)ℹ️

The entity that published the report 'The Great Transshipment Scam' on August 13, 2026.

Arada Fuangthong(อารดา เฟื่องทอง)

The Director-General of the Department of Foreign Trade.

Donald Trump(โดนัลด์ ทรัมป์)ℹ️

The US President whose government is being sued by 25 US states.

Section 301 of the Trade Act 1974(มาตรา 301 ของกฎหมายการค้าปี 1974)

The law used by the US to claim forced labor and impose import tariffs.

IEEPA Law(กฎหมาย IEEPA)

A law previously used to grant the US President power to increase tariffs without congressional approval.

The Great Transshipment Scam

A report identifying over 40 countries helping China avoid US tariffs via third-party exports.

Agreement on Reciprocal Trade (ART)(ความตกลงการค้าต่างตอบแทน (Agreement on Reciprocal Trade : ART))

A trade agreement Thailand aims to finalize during negotiations with the US.

USA(สหรัฐฯ)ℹ️

The country imposing import tariffs on Thai products.

Thailand(ไทย)ℹ️

The country facing import tariffs and negotiating with the USA.

Brazil(บราซิล)ℹ️