Thailand Mulls Zero Duty for More US Goods to Win Tariff Deal
Thailand, which has previously cut tariffs on imports of longan and tilapia fish from other countries, could lower the levy for the US on those goods to zero, Finance Minister Pichai Chunahavajira said. The government may also amend existing regulations to allow left-hand drive vehicles from the US and eliminate taxes on goods already included in free-trade agreements with other countries, he said.
The US is pushing for 'ambitious proposals,' the minister told a trade seminar in Bangkok Monday, without elaborating. The two sides remain engaged in ongoing dialogue to reach a deal, he said.
Thai officials are optimistic about finalizing an agreement before the Aug. 1 deadline set by President Donald Trump. Thailand has pledged to eliminate import duties on 90% of US goods and to remove various non-tariff barriers. The government has also offered to increase purchases of US agricultural and energy products in a bid to reduce its trade surplus, which stood at $46 billion last year.
The US was Thailand's largest export destination in 2024, accounting for approximately 18% of total shipments. Thai exports have increased by about 15% in the first five months of this year, driven by accelerated orders ahead of the anticipated tariff implementation.
Some of the US demands in trade talks go beyond tariff and non-tariff reductions and cover geopolitical issues, Pichai told a trade seminar in Bangkok Monday. Conceding to such demands may spark domestic unrest, he said, adding that any agreement with the US must be mutually beneficial and sustainable for Thailand in the long term.
US demands regarding local content requirements are unlikely to have a major impact as Thailand's exports are mostly from older industries with high domestic inputs, Pichai said.
The US has threatened higher tariffs on countries suspected of rerouting Chinese goods to avoid the trade war. Trump recently announced a deal with Vietnam that includes a 20% tariff on exports and a 40% rate on products considered to be transshipped.
Thailand is among several countries that have received tariff warning letters from the Trump administration and is now racing to finalize a deal to avoid steep levies. Failure to secure reduced tariffs from its largest export market could lead to a sharp decline in shipments and shave up to one percentage point off the nation's projected economic growth.
This article was generated from an automated news agency feed without modifications to text.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Mint
4 minutes ago
- Mint
Rahul Gandhi gets bail in controversial defamation case over remarks on Indian Army
A Lucknow court on Tuesday granted bail to Leader of Opposition (LoP) in Lok Sabha and Congress Member of Parliament Rahul Gandhi after he appeared in a defamation case filed over his purported remarks on Army personnel, his lawyer said. The case relates to alleged defamatory remarks against Indian soldiers made during his Bharat Jodo Yatra in 2022, his counsel, advocate Pranshu Agarwal, told news agency PTI. Following his appearance, the Additional CJM Alok Verma-led MP-MLA Court granted Gandhi relief on furnishing two bonds of ₹ 20,000 each. The bail was effected after Gandhi furnished a bail bond and sureties as directed by the court. Gandhi was summoned as an accused after the court took cognisance of the defamation complaint. The Congress leader had moved the high court but failed to get relief. Gandhi appeared in a courtroom full of lawyers. He was taken to the judge's chamber, where the formalities of filing bond and sureties took place. Congress party's state unit president Ajay Rai and in-charge Avinash Pande also accompanied Gandhi. "He (Gandhi) is scheduled to attend the court hearing and would return to Delhi later in the day. He is likely to come to Uttar Pradesh again to visit his constituency Raebareli over the next few days," Rai told PTI before the hearing. Security was beefed up along the route of his travel and in and around the court premises. The defamation complaint was filed by one Uday Shankar Srivastava, a retired director of the Border Roads Organisation (equivalent to the rank of colonel in the Army). The complaint alleged that on December 16, 2022, Gandhi, while addressing various media personnel and the public during the Bharat Jodo Yatra, mentioned the clash between the Indian Army and the Chinese Army on the border of Arunachal Pradesh on December 9 (2022) and said that "people will ask what all about Bharat Jodo Yatra, but will not ask even once about the beating of our soldiers by Chinese soldiers". The complainant alleged his sentiments were hurt by Gandhi's statement about the alleged beating of Indian soldiers by the Chinese soldiers. On February 11, the special court ordered Gandhi to be summoned on charges of defamation.
Hindustan Times
6 minutes ago
- Hindustan Times
US consumer inflation rises to 2.7% in June amid concerns over Trump's tariffs
US consumer inflation accelerated in line with analyst expectations last month, government data showed Tuesday, as policymakers try to gauge how President Donald Trump's ever-growing list of tariffs is affecting the economy. While Trump imposed a 10 percent tariff on almost all trading partners in April and separately slapped steeper duties on imports of steel, aluminum and autos, US officials have pushed back against warnings that these could spark price increases.(Bloomberg) The consumer price index (CPI) was up 2.7 percent from a year ago in June, rising from the 2.4 percent figure in May as energy costs rose, said the Department of Labor. Other areas that saw cost increases included household furnishings and apparel -- both segments that experts are eyeing for signs of cost hikes after Trump's sweeping tariffs this year. While Trump imposed a 10 percent tariff on almost all trading partners in April and separately slapped steeper duties on imports of steel, aluminum and autos, US officials have pushed back against warnings that these could spark price increases. Economists caution that tariff hikes could fuel inflation and weigh on economic growth, but US Treasury Secretary Scott Bessent has labeled such expectations "tariff derangement syndrome." CPI rose 0.3 percent in June from the previous month, an uptick from the 0.1 percent increase in May as well. Excluding the volatile food and energy segments, CPI climbed 0.2 percent on-month, picking up from May too. Compared with a year ago, "core" CPI was up 2.9 percent in June. Even if headline inflation figures show no "meaningful" surge because of tariffs alone, Nationwide economist Oren Klachkin warned it may be too soon to see their full impact just yet. Businesses have been trying to hold off consumer price hikes through a range of actions, from eating into their own margins to trying to share costs with their suppliers, he said. But it remains to be seen how long they can do this. There could be a bigger impact over the summer, Klachkin added. For now, he is looking "under the surface" at components most exposed to Trump's tariffs, such as furnishings, recreational goods and cellphones, to discern their effects. Besides steep tariffs that have already taken effect, Trump has also threatened even higher levels on dozens of key trading partners including the European Union, India, Japan and South Korea if they do not strike deals to avert these elevated levels. He has also opened doors to further levies on sector-specific imports ranging from semiconductors to pharmaceuticals, injecting more uncertainty in the global economy and worries of supply chain snags.
Time of India
13 minutes ago
- Time of India
Nvidia's China chip approval: Company wins US nod to export AI chips to China, says H20 shipments to start soon
Pic credit- AP Nvidia CEO Jensen Huang said the company has secured approval from the Trump administration to begin selling its advanced H20 chips to China, paving the way for resumed exports of its AI hardware to a key international market. 'The US government has assured Nvidia that licenses will be granted, and Nvidia hopes to start deliveries soon,' the company said in a blog post on Monday. Huang, currently in Beijing, also confirmed the development on Chinese state-run CGTN and in remarks shared on social platform X, AP reported. 'Today, I'm announcing that the US government has approved for us filing licenses to start shipping H20s,' Huang told reporters in Beijing. 'It's so innovative and dynamic here in China that it's really important that American companies are able to compete and serve the market here in China,' he added, noting that half the world's AI researchers are based in China. Huang meets Chinese officials Huang is in China to attend a supply chain conference and meet with local officials. CGTN aired footage of him meeting Ren Hongbin, chairman of the China Council for the Promotion of International Trade and organiser of the China International Supply Chain Expo, where Nvidia is one of the exhibitors. The approval comes after Huang's meeting with President Donald Trump and other US policymakers. The move follows export restrictions earlier this year that blocked sales of high-end AI chips, including Nvidia's H20 and AMD's MI308, to China. Industry pressures lead to policy shift The April decision to restrict chip exports had raised concerns across the tech industry. Nvidia warned the curbs would cost the company an estimated $5.5 billion in revenue. Huang and other executives have since pressed the administration to ease the restrictions, arguing that tighter controls would hurt American companies and shift demand to non-US suppliers. Stay informed with the latest business news, updates on bank holidays and public holidays . AI Masterclass for Students. Upskill Young Ones Today!– Join Now
