Thailand to rework trade proposals before the US tariff deadline

The Star

a day ago

Image from The Nation Thailand/ANN
BANGKOK (Bloomberg): Thailand will refine its trade proposal framework as it races to secure a reciprocal tariff deal with the US before the deadline next week, according to Finance Minister Pichai Chunhavajira, adding that the country's first ministerial-level talks went well.
Thailand received valuable feedback to its proposals submitted earlier from US officials, and the talks helped boost Washington's confidence in the two countries' economic partnership, Pichai said in a recorded video posted on his X account on Friday, while in transit from the US back to Bangkok.
Thailand was able to understand better what the US wanted after he met with US Trade Representative Jamieson Greer and Deputy Secretary of Treasury Michael Faulkender on Thursday, Pichai said.
He also met with US companies with longstanding investments in Thailand, as well as groups in the agricultural commodities sector.
"Talks went well, and the US thanked Thailand for our enthusiasm in the talks,' Pichai said in the video. "We said we'd take the feedback today to rework our proposals for our mutual benefits.'
Although talks have not yet concluded, Thailand still wished to come to an agreement that is "actionable, sustainable and mutually beneficial,' Pichai said.
Thailand - threatened with a 36% tariff on its goods - previously pledged to cut levies on US goods, removal of non-tariff barriers, tighten origin rules and more imports of farm goods and LNG to narrow the trade gap.
The US will likely start notifying trading partners from Friday of the new tariffs on their exports to the North American country, which will take effect from Aug. 1.
President Donald Trump announced a deal with Vietnam earlier this week, with Vietnam getting a 20% tariff on its exports to the US and a 40% rate on goods deemed transshipped through the nation.
The talks came days after a court suspended Thai Prime Minister Paetongtarn Shinawatra until it ruled on a petition alleging ethical misconduct, deepening a political turmoil that began with her handling of a border dispute with neighbouring Cambodia.
Before the talks, Pichai said Thailand was pushing for a win-win trade deal with the US. The South-East Asian nation has also outlined plans to cut its trade gap with the US by as much as US$15 billion annually with its initiatives to prevent the misuse of origin rules for exports.
The US was Thailand's largest export market last year, accounting for about 18% of the country's total shipments. The country posted a trade surplus of almost $46 billion with Washington in 2024.
Securing a lower US tariff rate is seen as key to shielding trade-reliant Thailand's economy from further downside as it's already squeezed by the highest household debt level in the region and sluggish consumption.
Thai officials have estimated that tariff levels of 36% could shave of at least one percentage point of gross domestic product this year.
Thailand's exports have surged about 15% in the first five months of the year, driven by front-loading of orders following a 90-day pause in high tariffs proposed by the Trump administration.
--With assistance from Pathom Sangwongwanich and Suttinee Yuvejwattana.
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