The private sector is optimistic that new US tariffs will not have a major impact on Thai exports, though businesses are urging the government to expedite trade negotiations to enhance the country's competitiveness on the global stage.

Starting from midnight US time on Friday, the Trump administration has imposed new tariffs of either 10% or 12.5% on goods from its top 60 trading partners, including Thailand, due to allegations of forced labour violations, according to US officials.

The tariff rates differ depending on the seriousness of forced labour allegations determined by the administration.

While most nations received a tariff rate of 12.5%, Cambodia, India, Indonesia and Malaysia are subject to a lower rate of 10%.

Poj Aramwattananont, chairman of the Thai Chamber of Commerce, said while Thailand faces a 12.5% tariff rate, most of its competitors have similar rates. As a result, the competitive landscape in the US market remains largely unchanged.

"Countries with slightly lower tariff rates may gain some competitive advantage," he said.

"However, the gap is much narrower compared with previous measures and is unlikely to significantly impact the competitiveness of Thai businesses."

The US is emphasising issues such as forced labour and excess production capacity in this round of trade measures, noted Mr Poj.

The private sector believes Thailand has not had a systemic forced labour problem for many years.

However, the country should accelerate the enactment and enforcement of relevant laws and regulations to increase confidence among trading partners and align with international standards, enabling Thailand to compete on a level playing field with countries that receive exemptions in the future, noted the chamber.

Regarding the US approach to excess capacity, Washington is still finalising the details and the measures could affect certain product categories. Thailand should expedite negotiations on the Agreement on Reciprocal Trade to help rebalance trade with the US, said Mr Poj.

The government and private sector should work together to prepare information and develop Thailand's negotiating position with the US to achieve mutually beneficial outcomes, he said.

UNCERTAIN OUTLOOK

Dhanakorn Kasetrsuwan, chairman of the Thai National Shippers' Council (TNSC), said while the 12.5% tariff rate is lower than an initial proposal, it remains a significant cost burden for Thai exporters.

The tariff is expected to weaken Thailand's competitiveness relative to rival exporting countries, particularly if others secure lower tariff rates.

"The primary concern among the private sector is not only the tariff rate itself, but also the uncertainty surrounding US trade policy. This uncertainty has prompted buyers to delay purchase orders and made it more difficult for exporters to plan their operations," he said.

TRADE TALKS

The TNSC encouraged the government to continue trade negotiations with the US while accelerating efforts to open new markets and support businesses in diversifying export destinations to high-potential markets such as India, the Middle East, Africa and Latin America, thereby reducing excessive reliance on any single market.

Mr Poj said Thailand should accelerate efforts to finalise trade agreements that can reduce trade barriers and maintain the country's long-term competitiveness.

"Thailand should use this opportunity to improve labour standards, enhance supply chain transparency, and advance trade agreements, turning this challenge into an opportunity to strengthen the country's long-term competitiveness," he said.

LABOUR RIGHTS

Thailand needs to demonstrate to Washington how it protects workers' rights to avoid facing high tariff rates caused by forced labour, said Pimjai Leeissaranukul, chairwoman of the Federation of Thai Industries (FTI).

Thai manufacturers have been complying with national labour protection laws and international standards on labour rights, she said.

Exporters must allow their manufacturing to be inspected by trading partners, said Mrs Pimjai.

"This advantage should be harnessed to ensure full traceability of products and raw materials across supply chains," she said.

Stronger actions will build confidence among US authorities and support Thailand's trade negotiations with the US, said Mrs Pimjai.

The US is a major export market for Thailand, with the shipment value during the first five months of 2026 reaching US$38 billion, up 40% year-on-year, according to the FTI.

"We also need to adopt a market diversification approach," she said, as Thailand should not be overly reliant on certain markets.