Thai government clarifies US Section 301 tariff concerns

Lalida Pheriswiwatana, Deputy Spokesperson for the Prime Minister's Office, has responded to criticisms regarding US tariffs on Thai goods. She addressed comments made by former Thai Ambassador to the US, Pisan Manawapat, who suggested that if the Agreement on Reciprocal Trade (ART) results in Thai products facing tariffs higher than 12.5%, Thailand would lose its competitive edge against neighboring countries.

Lalida clarified that the 12.5% figure currently being discussed is specifically related to a Section 301 investigation regarding forced labor and does not represent the final total tariff rate. She emphasized that a complete comparison of competitiveness requires looking at the total impact of all Section 301 measures, including investigations into production capacity and structural overcapacity.

While some neighboring countries may have a 10% rate due to ART obligations, they are also subject to other Section 301 processes. The government maintains that the trade process is ongoing and that evaluating competitiveness based on a single component of the tariff structure provides an incomplete picture.