Thai Enquirer
Thailand seeks lower US tariff as 12.5% levy takes effect
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Thailand is seeking to negotiate a lower US import tariff after Washington imposed a 12.5% duty on Thai goods under Section 301 of the US Trade Act, with officials saying a reciprocal trade agreement remains possible and business groups arguing the impact will be limited because most regional competitors face the same rate.
Key facts
- In the first six months of 2026, exports increased 17.6% to US$196.74 billion, while imports rose 38% to US$228.49 billion, resulting in a trade deficit of US$31.74 billion
- Exports rose 20.8% year-on-year in June to US$34.66 billion, marking a 24th consecutive month of growth, while imports jumped 50.3% to US$41.19 billion, leaving a trade deficit of US$6.53 billion
- The Trade Policy and Strategy Office raised its base-case export growth forecast for 2026 to 8%, with a best-case scenario of 11%, citing stronger-than-expected first-half performance
- He estimated that Thai exports worth about US$30.09 billion (1.02 trillion baht) over the remaining five months of 2026 are potentially exposed to the new tariff, with about US$24.4 billion (829.7 billion baht) across 11 major export
- Because the US accounts for about 21% of Thailand’s total exports, he estimated the country’s overall export growth could be trimmed by 0.8-1.2 percentage points, reducing 2026 export growth from the ministry’s base-case forecast of 8% to
- The new tariff replaced the temporary 10% duty imposed under Section 122, which expired on July 24
Summary
The announcement came as Thailand reported another strong month for exports. Exports rose 20.8% year-on-year in June to US$34.66 billion, marking a 24th consecutive month of growth, while imports jumped 50.3% to US$41.19 billion, leaving a trade deficit of US$6.53 billion. In the first six months of 2026, exports increased 17.6% to US$196.74 billion, while imports rose 38% to US$228.49 billion, resulting in a trade deficit of US$31.74 billion.
The new tariff replaced the temporary 10% duty imposed under Section 122, which expired on July 24. Thailand is among 38 countries, including Vietnam, the Philippines and China, subject to the 12.5% tariff under Section 301, in addition to normal most-favored-nation (MFN) duties. The measure took effect at 12:01 a.m. US time on July 24.