Commerce Ministry tracks U.S. ruling, braces for tariff shift

Commerce Minister Suphajee Suthumpun said Thailand will continue trade talks with the United States to maintain stability in trade and investment ties, reduce risks from shifting U.S. trade measures, and manage any impacts on Thai businesses. The Ministry of Commerce is closely monitoring developments in U.S. trade policy.

She said that although the U.S. Supreme Court has issued a ruling that affects how the U.S. can impose tariff measures, several issues still require clarity—both legally and in terms of how the decision will be applied in practice. The ministry has therefore assigned the Department of Trade Negotiations to assess the situation comprehensively, including potential impacts on the Thai business sector.

The ruling followed President Donald Trump’s use of the International Emergency Economic Powers Act (IEEPA) to impose “reciprocal” tariffs on various countries. On February 20, 2026 (U.S. time), the U.S. Supreme Court voted 6–3 to uphold a lower-court decision that the president’s use of IEEPA to impose reciprocal tariffs was unlawful, because IEEPA does not grant authority to levy tariffs—a power that belongs to Congress under the U.S. Constitution.

Suphajee said the key point of the ruling reflects checks and balances. The court found that while IEEPA gives the executive branch broad authority to control international economic transactions during an emergency, imposing tariffs requires a clear grant of power from the legislature.

On the issue of refunds, she said importers who were parties to the case have the right to file claims for refunds. However, because very large sums are involved and multiple parties are affected, the process is likely to be complex and will require clear guidance from the U.S. government.

At the same time, Thailand must closely track the U.S. government’s stance after the U.S. president signed an order imposing an additional 10% import duty on goods from all countries worldwide for 150 days, under Section 122 of the Trade Act of 1974, to address balance-of-payments problems. This measure will take effect on February 24, 2026, replacing reciprocal tariffs that can no longer be applied.

Suphajee added that the 10% rate under Section 122 is lower than the earlier reciprocal tariff rate previously set for Thailand at 19%, and said the ministry will continue to closely follow developments in US trade measures.

She also said there remains a possibility the U.S. will use other measures, such as Section 232 of the Trade Expansion Act of 1962 in cases linked to national security threats—citing previous additional tariffs announced for some product groups, including steel and aluminium (50%), copper (50%), automobiles and parts (25%), and some semiconductor items (25%).

This could also include Section 301 under the Trade Act of 1974, which the US has previously used against some countries in response to trade practices it considers unfair, as well as Section 338 under the Trade Act of 1930, which can allow additional import tariffs on countries deemed to discriminate against U.S. trade.

In principle, she said that once the IEEPA-based reciprocal tariffs are no longer collected and the U.S. applies the 10% Section 122 duty, Thai exporters shipping goods to the U.S. would have to pay:

• the standard U.S. import duty rate for that product (MFN),
• plus an additional 10% under Section 122,
• plus any other applicable fees, and, if the product already faces special penalties such as anti-dumping duties (AD) or countervailing duties (CVD), those could still apply as well.

This will apply from 00:01 on February 24, 2026 for goods entered for consumption, or withdrawn from a U.S. warehouse for consumption, and will apply for 150 days—until 24:00 on July 23, 2026—unless changes occur, or the period is extended by the U.S. Congress.

Suphajee said the Ministry of Commerce is prioritising proactive management of any impacts on Thai businesses through trade negotiations, risk assessments and business briefings, so Thailand’s export and investment sectors can adapt appropriately amid changing international trade conditions.

Businesses seeking further details can contact the Department of Trade Negotiations hotline at 0-2507-7555.