The Ministry of Commerce (led by Deputy Prime Minister and Commerce Minister Suphajee Suthumpun) has moved to ease market concerns following the U.S. decision to impose a 12.5% Section 301 tariff, clarifying that more than 50% of total Thai export value to the United States will remain fully exempt.
The statement highlights that key flagship industries are completely shielded from the new levies, significantly softening the immediate economic blow to Thai exporters.
Key Goods Shielded from Tariff Increases
According to the official announcement, 2,120 product categories—representing over half of Thailand’s export value to the U.S.—have been granted exclusions from the 12.5% tariff.
The list of tax-exempt commodities includes major industrial and agricultural drivers:
- Electronics & Tech: Integrated circuits (ICs) and Hard Disk Drives (HDDs).
- Aerospace: Aircraft parts.
- Rubber & Agriculture: Natural rubber, rubber sheets/bars, tapioca starch, fresh and processed pineapples, fresh and dried fruits, fresh coconuts, coconut water, and cane sugar.
Strategic Negotiations
Addressing why Thailand did not rush into an immediate deal alongside some regional neighbors, Dr. Kirida Bhaopichitr, Assistant to the Commerce Minister, explained that Thailand is prioritizing a balanced, long-term outcome over a hasty agreement.
The government is actively working toward an Agreement on Reciprocal Trade (ART) with Washington. This comprehensive framework covers:
- Tariff reductions and elimination of non-tariff barriers (NTBs).
- Digital trade cooperation and preventing illegal third-country transshipments.
- Economic security cooperation to ensure long-term, sustainable growth.
The statement noted that Thailand’s position requires careful deliberation because of domestic legal constraints and sensitive areas that cannot be compromised—particularly regarding public health, national security, and environmental safety. The assistant to the Commerce Minister reassured local farmers, manufacturers, and exporters that long-term national interest remains the top priority.
Relief & Support Measures
To support companies that may still face direct impacts from the new policy, the Ministry of Commerce is rolling out immediate assistance and structural support measures:
- Low-Interest Loans: Soft loans to maintain liquidity for impacted operators.
- Tax & Logistics Relief: Tax support for exporters, alongside efforts to cut transport and supply-chain costs.
- Local Sourcing: Incentives promoting domestic raw materials and components to strengthen internal supply chains.
- Market Diversification: Active expansion into new overseas markets to reduce over-reliance on any single trade partner.
