Ministry sets task force as US Section 301 probe targets Thai autos, machinery and rubber

Commerce Minister Suphajee Suthumpun said the United States has begun reviewing trading partners, including Thailand, under Section 301 of the Trade Act of 1974 over concerns about “structural excess capacity” in manufacturing, which could lead to trade retaliation measures.

She said she has ordered the establishment of a special task force within the Ministry of Commerce to closely monitor developments and prepare Thailand’s response to the allegations. The task force will be chaired by Vuttikrai Leewiraphan, Permanent Secretary for Commerce, with the director-generals of all Commerce Ministry departments included. It will meet to assess sector-by-sector impacts and prepare clarifications to help prevent Thai goods from facing additional tariffs.

Suphajee said the US process could lead to retaliatory measures if the policies of the economies under review are found to be “unreasonable or discriminatory”.

She said that on March 11, 2026, the Office of the United States Trade Representative (USTR) announced the start of investigations into 16 economies, including Thailand, to examine “acts, policies and practices” that may contribute to excess capacity in manufacturing. The US views this as an obstacle to re-shoring and as harmful to American jobs.

The US rationale cited includes Thailand’s goods trade surplus with the US, which it puts at US$51 billion in 2025, up from US$46 billion in 2024. It also cites evidence that Thailand’s manufacturing sector has operated at below 60% capacity utilisation for two consecutive years, with only one-third of industries recovering to pre-Covid-19 levels.

The US also identified sectors for consideration including automobiles and auto parts, machinery, and rubber, which it views as areas where Thailand maintains significant trade surpluses in global markets.

Suphajee added that Thailand differs from some other economies under review in that it has not been flagged for currency intervention aimed at gaining trade advantage, and it does not provide direct cash export subsidies in the way some economies do.

Under the Section 301 process, Thailand can take part by submitting written comments to USTR by April 15, 2026 (11:59 p.m. EST), and filing a request to appear at the public hearing set for May 5, 2026 in Washington, D.C. Post-hearing rebuttal comments can be submitted within seven calendar days after the last day of the hearing.

“Section 301 has no tariff cap. In the past, the US used Section 301 against China and imposed tariffs of up to 100%,” Suphajee said, adding that she is not overly concerned about the “reasonableness” point because Thailand has grounds to clarify the issues—but said Thailand must provide clear explanations, including on local-content requirements.