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Does Thailand have leverage to negotiate with the US over new tariffs?

Does Thailand have leverage to negotiate with the US over new tariffs?

11 Sept 14:07 Key points summarised by AI
  • The U.S. implemented new tariffs, including a 12.5% levy on Thailand, citing forced labor concerns, marking a renewed push after a prior tariff regime's collapse.
  • Thailand demonstrates a strong capacity to negotiate and implement reforms, having successfully addressed past U.S. and E.U. concerns regarding labor and human trafficking through comprehensive policy changes.
  • While current forced labor tariffs have limited direct export impact, Thailand faces a significant risk of further U.S. Section 301 tariffs stemming from industrial overcapacity, especially linked to Chinese investments.
  • Thailand actively engages with the USTR, leveraging its U.S. investments and seeking adjustments to trade commitments to navigate tariff challenges and reduce the bilateral trade deficit.
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