Thailand pushes US trade deal amid 12.5% tariff before proposed Sept 17 or 18 call

Thailand is accelerating talks on a reciprocal trade agreement with the United States amid concerns that a separate US investigation into excess production capacity could lead to higher tariffs on Thai exports. Department of Trade Negotiations director-general Chotima Iemsawasdikul said there was still no firm timetable for concluding the deal, in comments published by Thansettakij on September 16, 2026.

Thailand is seeking tariff conditions comparable with those granted to its regional neighbours, with Prime Minister Anutin Charnvirakul expected to discuss the negotiations with US President Donald Trump by telephone on September 17 or 18, 2026. Deputy Prime Minister and Commerce Minister Suphajee Suthumpun said Washington had yet to select the date.

Suphajee said Thai negotiators were scheduled to speak to the Office of the United States Trade Representative (USTR) on the night of September 15 to settle outstanding details of the Agreement on Reciprocal Trade (ART) and prepare information for Anutin’s discussion with Trump.

Suphajee said Thailand wanted to agree the substantive framework before Anutin and his delegation travelled to the United States, where a further meeting with Trump was expected in connection with the United Nations forum. Proposed tariff figures remained undisclosed because Anutin would discuss a special proposal directly with Trump, while the Commerce Ministry worked to complete the agreement’s content.

Thailand faces separate US tariff measures

Chotima distinguished Thailand’s existing 12.5% tariff from the possible outcome of the excess-capacity investigation. The current levy is imposed under Section 301 of the US Trade Act and concerns measures to prohibit imports of goods produced with forced labour, rather than the former reciprocal-tariff mechanism.

Thailand had previously faced a 19% reciprocal tariff before that measure was withdrawn following the US Supreme Court’s rejection of the legal basis for the tariffs. The court ruling came in February 2026, prompting Washington to pursue other trade instruments, including Section 301 investigations.

Chotima warned that the separate excess-capacity investigation could bring further duties before Thailand completed its ART negotiations. The timing of the US decision remained unknown, although she believed an announcement could be approaching.

Chotima said Section 301 did not specify a fixed upper limit on tariff rates, increasing the potential consequences for Thai exporters. Higher duties than those imposed on competing countries would weaken the competitiveness of Thai goods in the US market, she warned.

Chotima said completing an ART could help Thailand obtain treatment closer to that of other partners, citing the 10% rate applied to Malaysia and Indonesia under the forced-labour-related measure. The USTR’s framework links that lower rate to specified import-ban measures or commitments, including commitments made through an ART, rather than granting it automatically whenever an agreement is signed.

Malaysia and Indonesia are also covered by the excess-capacity investigation. The USTR’s March 2026 notice lists 16 economies in total, including Thailand, Malaysia, Indonesia and Vietnam.

Chotima said Vietnam faced an additional issue concerning intellectual-property infringement, alongside the forced-labour and excess-capacity matters.

Thai officials challenge US production and transshipment data

Suphajee said Thailand had submitted detailed information and evidence to contest US concerns about transshipment, arguing that three industrial groups under investigation had not committed wrongdoing. She cited production-capacity figures of 75–100%, rather than below 60% as the US side had previously understood.

Suphajee said she remained hopeful of positive news and believed Thailand’s explanations could lead Washington to take a more favourable view of the country.

Chotima said US concerns arose partly from a perceived mismatch between Thailand’s production capacity and the volume of its exports to the United States. That had raised questions about whether goods originating in other countries were involved, in a manner resembling the misrepresentation of product origin.

Chotima maintained that the US assessment relied on outdated figures. Thailand’s Commerce Ministry was working with the Department of Foreign Trade to update the information and present a more accurate account of domestic production, she said.

Thai-US agreement still requires negotiations and domestic approval

Chotima said negotiators were still working on the draft agreement, which contained numerous provisions and unresolved issues despite efforts to accelerate the process.

“The department is doing everything it can, but we still cannot specify exactly how soon the deal can be concluded,” Chotima told Thansettakij.

Thai officials had reported agreement on the main terms earlier in September, while assigning technical teams to resolve the remaining details. Agreement on those main terms did not amount to completion of the full negotiating process.

Chotima cited Indonesia and Malaysia as examples of the time needed to work through negotiations and implementation, saying their signed agreements with the United States had yet to take effect.

Even a completed negotiating text would not take effect immediately in Thailand, Chotima said. The agreement would first need Cabinet approval, followed after signing by public hearings and submission to Parliament through the normal procedures.

Chotima said ART constituted an international agreement, making its domestic approval process broadly comparable with that required for a free trade agreement (FTA).

ART discussions cover market access, not a new bilateral FTA

Chotima said reports of Thailand-US negotiations covering six groups of goods or six chapters referred to the existing ART framework, not the launch of a separate bilateral FTA negotiation. She described Trump’s trade policy as favouring reciprocal agreements rather than new FTAs.

The detailed ART provisions remained confidential, Chotima said, but the principal US requests involved reducing Thai trade barriers, facilitating investment and improving access to the Thai market for American businesses.

Chotima said Thailand’s discussions followed an approach similar to the US agreements with Malaysia and Indonesia, drawing on the USTR’s National Trade Estimate Report on Foreign Trade Barriers (NTE). The report compiles US business complaints about tariffs, non-tariff measures, regulations, agricultural products, services, investment and intellectual property in trading-partner markets.

Chotima described the NTE report as a longstanding record of such concerns, compiled over 20–30 years or longer.

Thailand’s Department of Trade Negotiations is coordinating the relevant ministries through several channels, including negotiations in the United States alongside Suphajee’s delegation and remote meetings to resolve outstanding issues.

Previously discussed purchases of US aircraft, feed corn and soybean meal remained within the understanding between the two sides, Chotima said. However, the government could not require private companies to buy goods worth a specified amount.

Chotima said commercial agreements and memoranda of understanding, including those concerning feed corn, would therefore depend on companies’ actual business requirements.

Thailand is separately pursuing an FTA with the European Union, with a target of concluding negotiations by the end of 2026. The Department of Trade Negotiations said protecting national interests remained more important than speed, particularly as a more complex global trading environment prompted countries to strengthen links with major markets such as the EU in response to US trade measures.

Source: Thansettakij