BANGKOK, Thailand – Thailand is closely watching a legal challenge in the United States over new import tariffs imposed on 60 countries and trading partners, with the Department of Foreign Trade saying the forced-labor measure could ultimately be overturned while a separate excess-capacity measure remains a concern.
Arada Fuangthong, director-general of the Department of Foreign Trade under the Ministry of Commerce, said 25 US states led by Democrats have filed a lawsuit against the administration of President Donald Trump at the US Court of International Trade. The states are seeking to suspend new tariffs of 10% and 12.5% imposed on imports from 60 countries and economic partners. They argue that the measures are unlawful, claiming the forced-labor justification was used to circumvent an earlier court ruling and that the administration exceeded its authority.
The lawsuit also seeks refunds for import duties already paid by importers. Thailand has been particularly affected by the measure, with the United States imposing a 12.5% tariff on Thai imports from July 24, 2026, citing forced labor under Section 301 of the US Trade Act of 1974.
The Department of Foreign Trade, which is responsible for defending Thailand’s interests in the matter, believes the forced-labor tariff could eventually be ruled unenforceable. Arada said the case could follow the pattern of earlier US import tariffs imposed under the International Emergency Economic Powers Act, or IEEPA, which gave the US president broad authority to impose tariffs without congressional approval.
The department’s assessment is based partly on the way the forced-labor investigations were conducted. Investigations covering countries around the world were completed in only about two months, despite significant differences among individual markets. The department also questioned why countries received substantially different tariff rates of either 10% or 12.5%, saying Washington would need to explain the criteria used to determine the rates. The outcome of the court case remains uncertain, but Thailand will continue monitoring the proceedings closely. A separate issue involving structural excess capacity presents a potentially greater risk for Thai exporters.
According to the Department of Foreign Trade, the United States is more likely to be able to enforce measures related to structural excess capacity following the release of a White House report on August 13 titled “The Great Transshipment Scam.” The report alleges that more than 40 countries have helped China avoid US tariffs by routing exports through third countries with lower tariff rates.
Thailand was included in Tier 2 of the report, alongside Brazil, Indonesia, Malaysia, Türkiye and Vietnam. The group was described as having significant links to China’s supply chains.
The Department of Foreign Trade estimates that if the forced-labor and structural-excess-capacity measures are combined, Thailand’s overall tariff rate is unlikely to exceed 19%, which was the rate previously imposed. However, if such a combined rate is applied, around 28% of Thai products exported to the United States could be affected. The department will therefore identify products for which Thailand should seek tariff exemptions, with agricultural and food products expected to be among the priorities. The exact impact will depend on which products Washington ultimately places under the additional tariff measures.
Thailand is also preparing for another round of direct negotiations with the United States.
From August 27 to September 1, officials from the Department of Foreign Trade will travel to the United States as part of the Thai negotiating team to address the tariff issue. The delegation aims to conclude negotiations on the Agreement on Reciprocal Trade (ART) during the visit.
Arada said Thailand has prepared information covering the various issues raised by the United States, along with proposed solutions for each issue. The upcoming negotiations will also be conducted face-to-face rather than online, giving Thai officials greater opportunity to explain the country’s position and respond directly to US concerns. The Department of Foreign Trade expects the direct discussions could help Thailand reach a clearer outcome on the tariff issue.
While Thailand hopes the forced-labor tariff will ultimately be overturned through the US court process, officials are preparing for the possibility that tariffs linked to structural excess capacity could remain. The government will therefore continue pursuing exemptions and seeking to limit the impact on Thai exporters, particularly agricultural and food producers, while using the upcoming ART negotiations to address broader trade concerns with Washington.
