BANGKOK: The collection of Donald Trump’s retaliatory customs tariffs under the International Emergency Economic Powers Act was ruled unlawful by the US Supreme Court last Friday.
Following the Supreme Court’s ruling, the US President signed an executive order to enforce a new global customs tariff of 10% under Section 122 of the Trade Act of 1974, which came into effect yesterday.
And then on Saturday, the US President announced a 15% tariff rate, describing it as a legally permitted and legally reviewed level, effective immediately, although it had not yet been issued as an executive order.
Meanwhile, the Thai government called an urgent meeting of relevant agencies on Sunday, involving the Finance Ministry, Commerce Ministry, Foreign Affairs Ministry and the National Economic and Social Development Council.
Ekniti Nitithanprapas, Deputy Prime Minister and Minister of Finance, said the Supreme Court’s decision to revoke the reciprocal tariff measure was positive for confidence in the short term, reflected in the Stock Exchange of Thailand index, which responded because the United States could not use tariff tools as conveniently as before.
Ekniti said the current average tariff rate in Asean is 19%, while the latest US measure sets a rate of 15% and is effective for 150 days, meaning the effective rate on some Thai products could fall to below 10%.
In addition, Thailand gains an advantage because competitor countries that previously enjoyed a 10% tariff rate have been raised to 15% as well, making Thailand’s competitiveness more equal.
“Even though this revocation does not mean trade barriers will disappear, it is a shift in form towards using other tariff tools,” he said.
“In the short-term it benefits Thai exports significantly, because the tariff rate has fallen from the previous 19% applied to Thailand to 15%, equal to other countries.”
Ekniti added that negotiations with the United States Trade Representative are continuing, with a view to protect Thailand’s interests and prepare for other long-term tariff measures.
The Commerce Ministry has set up a team to closely monitor developments and expects that during this period of uncertainty, exporters will rush shipments in the first two quarters of the year, or within the 150-day window.
For the long-term strategy, the government is accelerating free trade agreement (FTA) negotiations to open as many new markets as possible, positioning Thailand as a trade and investment base, and delivering maximum benefits for Thai businesses.
Exports of goods and services are the core of Thailand’s economy, accounting for a combined 70% of gross domestic product, broken down into goods at 60% and services at 10%.
“After forming a new government, we must accelerate as many FTA negotiations as possible. What we are seeing is not very different from before – both trade barriers and pressures remain.
But there are clear opportunities from investment relocating production into Thailand and Asean.”
The government is also preparing to announce 2026 as the “Year of Investment” to capture the relocation of production bases into Thailand and Asean.
This is reflected in applications for investment promotion at the Board of Investment (BoI), which grew by as much as 68% in 2025 from the previous year.
“During this period, Thailand must urgently unlock investment and rules that are obstacles, so that investment funds flow into the real economy and return as a key engine driving economic growth potential,” he said.
The Prime Minister has assigned the Secretary-General of the Council of State to remove of legal restrictions that obstruct investors, and to expedite BoI-approved projects that are stalled. — The Nation/ANN
