Thai exports hit by new US 12.5% Section 301 tariff over forced labour rules

Thai exporters are facing a fresh challenge after the United States announced an additional 12.5% import tariff on most goods from Thailand under Section 301 of the US Trade Act of 1974, citing concerns over measures to prevent imports of goods produced with forced labour.

The Office of the United States Trade Representative, or USTR, said on July 23 that it was taking final action against 60 economies for failing to impose and effectively enforce bans on imports made with forced labour. The move followed investigations, public hearings, more than 2,100 public comments and consultations with more than 45 governments.

Under the USTR framework, trading partners that have adopted, committed to, or partially imposed forced-labour import prohibitions face a 10% tariff, while other investigated economies face 12.5%. Thailand falls into the latter group, according to Thansettakij’s review of the final notice.

The measure applies broadly to Thai exports unless the goods fall under specific exemptions listed in the annexes. Thansettakij reported that Thailand does not receive country-specific exemptions of the kind granted to some regional peers such as Malaysia, Indonesia and Cambodia.

Electronics and computers face pressure

The products expected to be most affected include Thailand’s key exports to the US, led by electronics and computers.

The list includes computers, components, hard disk drives, printed circuit boards, fax machines, telephones and related equipment, semiconductor devices, transistors, diodes and electrical control equipment.

Although the final notice includes exemptions for some types of semiconductor manufacturing equipment, the exemption does not cover finished electronic products, according to the Thansettakij report.

Tyres, appliances and processed food included

The tariff also covers rubber and rubber products, an important Thai export category to the US. Affected items include vehicle tyres, rubber gloves, condoms, processed natural rubber and other rubber products.

Electrical appliances such as air conditioners and parts, refrigerators, washing machines and household appliances are also in scope.

In agriculture and food, the affected group includes canned and processed seafood, particularly canned tuna, as well as rice, canned and processed fruit, and processed chicken.

Thansettakij noted that a request had been made to exempt frozen seafood, but USTR did not add that category to the exemption list.

Pet food exporters are advised to check customs codes case by case, as the exemption wording refers to animal-derived goods used as animal feed or feed ingredients, which may cover raw materials rather than finished pet food products.

Textiles excluded from quota relief

Thai garments and textiles are also subject to the 12.5% tariff.

Thailand is not included in the textile tariff-rate quota mechanism established by USTR, which applies only to Bangladesh, Cambodia, Indonesia and Malaysia and is linked to each country’s imports of cotton and textiles from the United States.

Other Thai products in scope include jewellery, plastic pellets and plastic products, chemicals, furniture and parts, solar panels, ceramics, footwear and leather goods.

Steel, aluminium and autos avoid double tariffs

Some Thai exports will not face the new Section 301 duty because they are already subject to other US measures.

Products already covered by Section 232 tariffs — including steel, steel products, aluminium, copper, vehicles and auto parts — will not be charged the Section 301 tariff on top of existing duties. USTR also confirmed that products subject to Section 232 are outside the scope of the latest action.

Other exemptions relevant to Thailand include coconut products such as coconut milk and coconut water, coconut coir and growing media, unflavoured instant coffee, crocodile and exotic animal skins, sugar under WTO quota, some pharmaceutical ingredients and medicines, metal scrap and battery scrap, processed shells, used clothing, artworks, antiques and collectables.

Exporters urged to check tariff codes

The announced product groups are based on descriptions in the notice, but exporters are being urged to check the actual 8-digit HTSUS customs codes in the full annexes before making trade decisions.

Thansettakij warned that where the notice uses the word “certain”, the exemption applies only to specific tariff lines, not necessarily to the whole product category.

The tariff takes effect from 00.01am on July 24, 2026, US Eastern Time. Goods already loaded and in transit before that time are exempt if they are entered for consumption, or withdrawn from warehouse for consumption, before 00.01am on July 28, 2026.

The new duty adds pressure on Thai exporters at a time when supply-chain traceability, labour standards and rules of origin are becoming increasingly important in global trade.

For Thailand, the immediate task is to help affected exporters verify product codes, prepare documentation and strengthen proof that Thai supply chains meet international labour and compliance standards.

Source: Thansettakij