The Commerce Ministry reported that afterthe U.S. Supreme Court ruledthat former U.S. President Donald Trump’s use of authority under the International Emergency Economic Powers Act (IEEPA) to impose retaliatory tariffs exceeded the legal limits, making those tariffs void and requiring repayment of collected taxes to the private sector,
Thailand must now closely monitor the situation, particularly the stance and actions of the U.S. government, as alternative measures may be introduced. Additionally, there are several laws granting the executive branch authority to impose tariffs under different circumstances.
Furthermore, attention must be paid to the procedures and timelines the U.S. government will follow to comply with the Supreme Court’s order. In principle, the retaliatory tariffs become null and must be canceled immediately, but it remains to be seenwhen the U.S. administration will repealthe tariffs and how the refund of previously collected taxes will be handled.
Meanwhile, President Trump recently signed an executive order invoking Section 122 of the Trade Act of 1974to impose an additional 10% tariff on imports from trading partners worldwide.Thailand is currently assessing the potential impacts and the U.S. government's future actions, since tariffs under Section 122 are temporary, lasting 150days unlessextended by the U.S. Congress. After expiration,the U.S. may implementother measures.
Initially, it is expected that Section 301 of the Trade Act will be used to impose additional tariffs on countries discriminating against U.S. trade. This section allows permanent and immediate tariff application but requires country- and product-specific considerations, unlike the retaliatory tariffs which applied broadly. Moreover, this process involves certain procedural steps.
Other relevant statutes include Section 232 under the Trade Expansion Act of 1962, which pertains to national security threats. The U.S. has previously imposed tariffs under this on certain products such as 50% on steel and aluminum, 50% on copper, 25% on automobiles and parts, and 25% on semiconductors. Additionally, Section 338 of the Trade Act of 1930 allows immediate tariffs on countries discriminating against U.S. trade, similar to Section 301.
Regarding the ongoing negotiations between Thailand and the U.S. on a retaliatory tariff agreement (ART Text), aiming for completion byJuly this year,Thailand sees the necessity to continue these talks to strengthen sustainable trade and investment relations, stabilize Thailand’s export sector, and reduce risks from trade policy volatility.
This depends on developments over time, as it is believed the U.S. executive branch retains mechanisms under other laws to implement tariff measures addressing economic issues and advancing national security objectives.
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