The Commerce Ministry is intensifying its call to exempt Thai-made steel and aluminium products from US tariffs.
The issue remains a huge concern for the Association of Thai Cold Rolled Flat Steel (ATCF).
In a statement on Tuesday, the group said the industry would lose up to 2.6 billion baht after President Donald Trump's decision to impose global tariffs of 25% for steel and 10% for aluminium, effective on Wednesday under the Trade Expansion Act of 1962, Section 232.
According to Adul Chotinisakorn, director-general of the Foreign Trade Department, the Commerce Ministry submitted a letter and proposal to the United State Trade Representative (USTR) on April 27 requesting an exemption from the tariffs imposed by the Trump administration.
The letter stated that Thailand should be excluded from the higher tariff because the country has a limited share of 1% of steel and aluminium exports to the US.
"The USTR is considering Thailand's proposal after negotiations during the Trade and Investment Framework Agreement in April in the US," Mr Adul said.
Mr Trump recently exempted South Korea from tariffs on steel under Section 232, following the postponement of the tariffs on Canada, Mexico and the EU until June 1.
Furthermore, domestic steel producers are also concerned about the impact on Thai steel exports after the US imposed higher tariffs, while the Commerce Ministry has yet to observe an effect from the measures.
Thailand exported 23,011 tonnes of steel and aluminium products to the US worth 573 million baht in March, which rose to 23,572 tonnes worth 623 million baht in April.
Thai exporters have coordinated with US importers to ask the USTR to waive the imposed tariff on Thai steel products.
About a possible influx of steel imports from the indirect impact, Thailand is likely to encounter a flood of foreign steel, as the US tariffs are expected to redirect steel to Thai markets, especially from China.
"The department is ready to proceed with any new measures to offset the impact," Mr Adul said.
Domestic steel producers can submit petitions to the Foreign Trade department if they are affected by the influx of imported steel, while the government may opt to apply safeguard tariffs, anti-dumping measures or countervailing measures to guard against a flood of foreign steel.
Mr Adul said domestic steel producers should monitor substandard steel imports that may enter Thailand. He urged related government agencies to inspect steel quality and illegal imports.
ATCF chairman Chaovarat Junpradub said many countries have launched measures to guard against indirect impact. The EU, for example, announced on March 26 that it would look at safeguard tariffs for 26 steel products, expecting to complete the inspection within nine months.
"Turkey also launched an inspection term on May 3 for five steel categories," Mr Chaovarat said, adding that Thailand should apply its own measures soon.
According to an Iron and Steel Institute of Thailand study, Thailand is estimated to lose 10.47 billion baht or 383,496 tonnes of steel exports as a direct consequence of the US tariffs.