China · Nation Thailand
Thai exports face US Section 301 risk over forced-labour concerns
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The United States is again emerging as a major challenge for Thailand ’s export sector amid moves to consider trade measures against Thai goods under Section 301 of the Trade Act of 1974 .
Key facts
- However, the Office of the United States Trade Representative (USTR) has yet to issue a final announcement confirming either an additional 12.5% tariff on Thai goods or its implementation on July 24, as suggested by some information that
- Concerns over forced labour in supply chains, particularly in the fishing industry, are among the main issues being raised.
- The proposed 12.5% tariff is being closely watched by the market because, if imposed, it would raise costs and make it harder for Thai exporters to compete in the US market.
- If Thailand faces an additional 12.5% tariff, exporters could encounter higher costs and limited options: either cut profit margins to retain the market or raise prices, potentially putting them at a disadvantage to competitors facing
- In the first five months of 2026, Thai exports to the US continued to expand, and the country remained a key market for many Thai products.
Summary
Concerns over forced labour in supply chains, particularly in the fishing industry, are among the main issues being raised.
The situation has caused concern among Thai businesses because the US is Thailand’s largest export market and plays an important role for a wide range of goods, from food and processed agricultural products to electronics, electrical appliances, vehicles and parts, and other industrial products.