Mrs. Arada Fuengthong, Director-General of the Department of Foreign Trade, revealed progress on the U.S. investigation of Thailand under Section 301 of U.S. trade law concerning import tariffs on Thai goods. After Thailand submitted its defense on 15 Apr 2026 against U.S. allegations that Thailand has excess production capacity in three sectors—automotive, machinery, and rubber products—and imports goods from countries using forced labor, the U.S. Trade Representative (USTR) will hear further statements from the Thai government on 13-14 May. The department is preparing a delegation including representatives from Customs Department, the American Affairs Department, the Board of Investment (BOI), and the Ministry of Labor to clarify the facts.
The additional clarification will emphasize that Thailand does not have excess production capacity in the three industries and that Thai industries are part of the U.S. supply chain. Confidence remains that Thailand’s defense will be accepted. However, concern centers on allegations regarding imports from countries using forced labor, as the U.S. appears likely to apply stricter criteria and possibly discriminate against certain countries. There are also doubts about how the U.S. verifies whether the source countries actually use forced labor.
Mrs. Arada added that the U.S. is expected to expedite the investigation to conclude before the 10% tariff under Section 122 expires on 24 Jul 2026, allowing immediate implementation of tariffs under Section 301. If Thailand fails to defend on both issues, the U.S. will impose high import tariffs on the three Thai industries, potentially exceeding the 19% retaliatory tariff currently imposed on Thailand, impacting Thai SMEs. Regarding forced labor, it remains unclear which Thai products will be targeted, but garments and agricultural products are expected to be affected.