Thailand seeks 78 additional US tariff exemptions for key export goods

The United States continues to use tariffs as a trade countermeasure in its dealings with partners worldwide.

Most recently, it announced Section 301 tariff rates on Friday (July 24, 2026) for 60 countries that had not introduced and enforced bans on imports of goods produced with forced labour, with Thailand placed in the highest rate band of 12.5%.

The latest measure followed a US Supreme Court ruling on Tuesday (February 24, 2026) that import tariffs imposed through presidential powers under the International Emergency Economic Powers Act (IEEPA) were unlawful.

The earlier US reciprocal tariff announced for Thailand was 36%.

Team Thailand has been negotiating tariffs continuously with the United States since 2025 and remains in talks on an Agreement on Reciprocal Trade (ART).

Suphajee Suthumpun, Deputy Prime Minister and Minister of Commerce, told Nation Group that the US had adjusted its import tariff several times, cutting it from 36% in early April 2025 to 19% in August 2025 and then to 10% in February 2026.

The latest adjustment raised the rate to 12.5% in July 2026, alongside the normal most-favoured-nation (MFN) tariff.

The number of product lines covered by the measure has increased to 2,120 from 471, reflecting a growing US tendency to link tariff policy with trade and labour issues.

Compared with competing countries, Thailand’s current 12.5% rate is the same as Vietnam’s and remains competitive, while China faces a higher rate.

Malaysia and Indonesia are at 10% after reaching agreements with the US.

Team Thailand is ready for technical-level ART talks and is awaiting a determination by the Office of the United States Trade Representative (USTR).

Once talks begin, they could be concluded within one week because Thailand has prepared all the necessary information and negotiating positions.

“Thailand’s goal is not to push for the lowest possible tariff, but to ensure that its rate does not differ too greatly from those of competing countries, so that Thai businesses can remain competitive,” Suphajee said.

Thailand holds to three key positions in US tariff talks

Team Thailand is holding to three positions it will not go beyond in the negotiations because they concern safeguarding the interests of farmers and the public, as well as the rights of businesses, which together represent the country’s overall interests.

“We are not looking only at the tariff figure. We must also consider the rates received by competing countries so that Thai businesses can compete. At the same time, we will not go beyond three areas concerning the interests of farmers and the public, and the rights of businesses,” Suphajee said.

Thailand clarifies structural excess capacity position

The United States is focusing on two main issues concerning Thailand:

• Progress on Human Rights Due Diligence (HRDD), or supply-chain checks aimed at preventing forced labour. Thailand does not yet have directly enforceable legal provisions covering the issue. The forced-labour issue under Section 301 concerns the US call for Thailand to enact a law banning imports of goods produced with forced labour. It is not an accusation that Thailand uses forced labour. Thailand has informed the US that it is drafting a bill and plans to submit it to Parliament in 2027.
• Structural excess capacity, whose long-term effects on global supply chains are being monitored by the United States. Thailand has explained that its industries have appropriate capacity utilisation rates of 70–90% and that no industry operates below 60%, contrary to claims. Thailand therefore maintains that its industries do not fall within the scope of US concerns. However, it remains unclear when the US will announce the findings of its investigation.

Tariff exemptions expanded to 2,120 product lines

Suphajee said Thailand had also received positive signals, with no additional import prohibitions imposed in some cases under Section 301 in connection with forced-labour concerns.

This was described as a factor supporting Thai exports.

Thailand also has several groups of goods exempt under the ART and HRDD frameworks, covering agricultural products, food, industrial products and some durable goods.

These exemptions help reduce the impact on Thai businesses.

Thailand has now received tariff exemptions for 2,120 product lines, up from 471.

The latest exemptions account for 61.50% of all product lines and US$56.2 billion in exports to the United States, equivalent to 50% of the value of Thai goods exported to the US.

The exemptions cover agricultural products, food, electronics, industrial goods, raw materials, aircraft, medical equipment and other goods.

This represents a significant achievement in the negotiations that helps reduce the impact on the export sector.

Non-exempt goods account for 38%

Goods that have not yet received exemptions account for 38%, comprising industrial and agricultural products.

When exemptions under US Section 232 are also included, the share of non-exempt goods falls to 28% of all exported products.

“If we look only at Section 301, 62% of Thai products are exempt.

When Section 232 is included, only 28% remain non-exempt.

We therefore believe the impact on Thai exports remains limited and is unlikely to be a major cause for concern,” Suphajee said.

Thailand seeks exemptions for seven product groups

The Ministry of Commerce is continuing negotiations with the United States to add products to the tariff-exemption list.

It has submitted a proposal covering seven product groups and 78 tariff lines, which is now under consideration.

Most of the products proposed for additional exemptions are agricultural and processed goods with export potential, including rice, jasmine rice, maize, coconuts, orchids, cassava, cassava starch and some fishery products.

Their combined export value is US$4.953 billion.

The proposal also covers several major exports, including jewellery, dog and cat food, milled rice, medical rubber gloves, tuna, processed bonito, fresh shrimp, cooked shrimp, sauces and seasonings, and processed cassava products.

Suphajee said the United States had originally designated 1,655 product lines for exemptions before expanding the total to 2,120 following previous discussions.

Thailand’s additional proposal covering 78 tariff lines is intended to secure further benefits for Thai products with export potential.

“Although trade negotiations today are more complex than in the past, the Ministry of Commerce will continue working to add Thai products to the exemption list in stages, to preserve competitiveness and minimise the impact on Thai exporters as much as possible,” Suphajee said.

Team Thailand sets out four areas for US negotiations

The government has set out four areas of action for Team Thailand to support negotiations with the United States and protect the national interest:

• Accelerate HRDD legislation to cover more goods produced in Thailand, reduce labour-related risks in supply chains and raise Thai standards in line with international principles.
• Expedite the conclusion of the ART with the United States to establish a mutually beneficial framework for bilateral trade cooperation.
• Support Thai businesses' investment in the United States to create jobs and expand economic cooperation.
• Promote imports of US goods under the Joint Statement on a Framework for a United States-Thailand Agreement on Reciprocal Trade, focusing on products that Thailand cannot produce or cannot produce in sufficient quantities to meet domestic demand, to reduce the trade imbalance.

Suphajee said the Ministry of Commerce would continue negotiations with the United States under the ART framework while developing HRDD standards to protect the national interest, strengthen confidence in trade and investment, and promote sustainable long-term Thai-US economic cooperation.

For exports in 2026, the Ministry of Commerce has raised its forecast after estimating at the start of 2026 that shipments would remain flat or grow only slightly.

It now expects growth of 8%, with a fluctuation range of plus or minus 1–2%.

This reflects continued strength in Thai exports, and the ministry is not overly concerned that US tariff measures will have a major effect on exports in 2026.

Thailand accelerated exports to the US before the new measure took effect, helping exports expand in the first half and giving the country a chance to move higher in the ranking of economies running trade surpluses with the United States.