What To Know
- According to this Bangkok Business News report, Trump has already signaled via Truth Social that the US is reviewing tariffs on furniture imports, with a formal investigation underway to decide both necessity and tariff rates.
- Analysts expect the administration to once again invoke Section 232 of the Trade Expansion Act of 1962, the same legal provision used to justify the controversial 50% tariffs on steel and aluminium.
Bangkok Business News: Rising Risks for Thai Furniture
The Thai Trade Centre in Miami has confirmed that US President Donald Trump is preparing another wave of tariffs, this time targeting imported furniture. Thailand currently ranks in the top 10 sources of furniture imports to the US, making the country especially vulnerable to the policy shift. According to this Bangkok Business News report, Trump has already signaled via Truth Social that the US is reviewing tariffs on furniture imports, with a formal investigation underway to decide both necessity and tariff rates.
Thai furniture exports are likely to be hit by a new round of Trump tariffs
Image Credit: AI-Generated
A Tight Political Timeline
The president has set a 50-day deadline, starting from August 22, for finalizing the measure. However, experts point out that under existing trade rules, the Department of Commerce has 270 days to complete investigations, followed by another 90 days for presidential action. This means Trump’s accelerated timeline is likely political rather than procedural, raising uncertainty for exporters who rely heavily on US markets.
Previous Orders and Legal Basis
This is not Trump’s first move against global furniture supply chains. Earlier this year, he signed an executive order citing national security risks linked to raw wood and timber imports. Analysts expect the administration to once again invoke Section 232 of the Trade Expansion Act of 1962, the same legal provision used to justify the controversial 50% tariffs on steel and aluminium. Should furniture face similar treatment, duties could be equally steep or even higher.
Implications for Thai Exporters
If new tariffs are enforced, Thai exporters may face significant cost burdens and declining competitiveness in their key market. Businesses could be forced to either absorb losses or pass on higher prices to American consumers, potentially reducing demand. While the official process might take much longer than Trump’s declared deadline, the looming threat alone has already rattled confidence in the Thai furniture sector. For exporters, this represents not just an economic concern but also a stark reminder of how politics can reshape global trade landscapes overnight.
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