Thailand Fights Back Against US Aluminum Tariff Hike
Bangkok—Thailand is preparing for the impact of increased U. S. tariffs on aluminum imports, which rose from 10% to 25% on March 12, 2025. This increase, part of a broader tariff framework enacted by then-President Donald Trump, has prompted the Thai government to develop counter-strategies to protect its aluminum industry. The tariff hike, justified by the U. S. administration under Section 232 of the Trade Expansion Act of 1962 on national security grounds, applies globally to all countries exporting aluminum and aluminum products to the United States. While Thailand’s steel tariffs remain unchanged at 25%, this extension to all exporting nations signifies a significant shift in U. S. trade policy.
The timing is particularly challenging for Thailand’s aluminum sector, which experienced explosive export growth to the U. S. in recent years. The U. S. is Thailand’s second-largest aluminum export market, absorbing approximately 15% of the country’s total output. In 2024, Thai aluminum exports to the U. S. reached 16.998 billion baht (approximately $505 million), a remarkable 65.53% increase. This upward trend continued into 2025, with January exports reaching 1.423 billion baht ($42.3 million), an impressive 85.67% year-on-year surge. Key exports include aluminum foil and thin aluminum sheets, products now facing substantially higher import duties.
In response, Thailand’s Ministry of Commerce has actively engaged with aluminum manufacturers and exporters. The Department of Foreign Trade has compiled data on the expected impact and proposed mitigation measures, submitting this information to the U. S. Trade Policy Working Group. This group, chaired by Permanent Secretary of the Ministry of Commerce Wuttikrai Leeviraphan, comprises representatives from various government agencies and is tasked with formulating negotiation strategies and coordinating actions with the private sector.
A day before the tariff increase, Prime Minister Paetongtarn Shinawatra met with the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB). This influential body, representing the Federation of Thai Industries, the Thai Chamber of Commerce, and the Thai Bankers' Association, discussed the potential impact of U. S. economic policies on the Thai economy. Prime Minister Shinawatra reassured attendees that the government is closely monitoring developments and adapting its policies accordingly. She emphasized the importance of Thailand’s trade relationship with the U. S. and highlighted the January establishment of the U. S. Trade Policy Working Group to anticipate and prepare for such events. She expressed confidence in the Thai private sector’s ability to develop effective countermeasures.
The government is pursuing a multi-pronged approach to mitigate the negative effects, including strategic trade and investment measures, enhanced agricultural product standards (potentially leveraged in future trade negotiations), and promoting technology and innovation to boost the competitiveness of Thai industries globally. Thailand’s proactive response demonstrates its commitment to maintaining economic vitality despite external challenges. The effectiveness of these measures remains to be seen, and the coming months will be crucial in determining the long-term impact on Thailand’s aluminum industry.
