Thailand to offer ‘no tariffs on 90% of US goods'
The government's third proposal would potentially eliminate tariffs and non-tariff barriers on about 10,000 US products, Chanintr Chalisarapong, vice-chairman of the Thai Chamber of Commerce, told Bloomberg News in an interview on Thursday.
He added that he expects the final tariff on Thailand will be set in a range of 18% to 20% — down from Trump's most recent threatened level of 36%.
The new proposal, which was to be presented to Washington during a conference call scheduled for Thursday night, could reduce Thailand's $45.6-billion trade surplus with the US by 70% within three years and lead to balanced trade within five years, according to Mr Chanintr.
The new figures are even more ambitious than Thailand's July 6 offer to cut tariffs on over 60% of products and eliminate the trade gap in seven or eight years.
'I expect our proposal to be solid and practical. The numbers should be satisfactory to the US,' said Mr Chanintr, who has consulted with negotiators led by Finance Minister Pichai Chunhavajira over the past week to finalise details.
'What we'll be offering is potentially more than Indonesia and Vietnam,' he said. 'Since we're a manufacturing country, we have potential to use a lot more US goods and process them into products that we can export.'
Thailand is one of the Southeast Asian countries racing to finalise terms with the US. Failure to secure a reduced tariff with its largest export market, which accounted for about 18% of Thailand's total shipments last year, could result in a sharp decline in merchandise shipments and shave as much as one percentage point off its projected export-driven economic growth.
Trump has announced deals for 20% tariffs on Vietnamese goods and 19% for Indonesia, though transshipments through both countries would face higher levies.
Bangkok rushed to sweeten its proposal after Trump announced last week that the 36% tariff level on Thailand would start Aug 1. Mr Pichai, who had submitted a second proposal by then, said he was shocked and had been expecting a lower number.
Thailand's new proposal may also include a tax exemption for US digital services that operate in Thailand or serve Thai customers, Mr Chanintr said.
As well, it may also pledge more imports of liquefied natural gas, Boeing planes, and key US food and agricultural products. The latter could include corn, soybeans and barley, which are important to Trump voters in rural states, he added.
Cheap US food and farm products are expected to help cut costs for the Thai pet food industry, which exports heavily to other countries. Lower costs for Thailand's animal feed industry will also likely boost productivity for the domestic poultry, livestock, and food-processing industries down the value chain, Mr Chanintr said.
Mr Pichai, who has said he was pushing for a best-case rate of 10%, is expected to hold more talks with US Trade Representative Jamieson Greer. In their meeting in Washington earlier this month, Mr Pichai agreed to cut import taxes for US products that are in short supply in Thailand and tighten rules to prevent transshipments.
'We'd like for talks to conclude soon so that trade can continue. There's been too much uncertainty,' Mr Chanintr said, adding he is confident Thailand can secure a deal before Aug 1. 'We're so close to the finish line.'
Thai growth is already under pressure from Southeast Asia's highest household debt and sluggish domestic consumption. A favourable deal would also ease investor concerns stoked by political turmoil following the court-ordered suspension of Prime Minister Paetongtarn Shinawatra over alleged ethical misconduct in handling a border dispute with Cambodia.
Thailand's exports rose about 15% in the first five months of the year, driven largely by frontloading during the 90-day pause to allow tariff talks.
'This is a global trade war, not a bilateral one,' Mr Chanintr said. 'Don't forget how high the stakes are.'
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Bangkok Post
25 minutes ago
- Bangkok Post
Artificial intelligence boosts battle against illegal websites
Artificial intelligence has been deployed, enabling the shutdown of 100,000 gambling and porn sites per month, although more needs to be done to curb these illegal sites, according to the Ministry of Digital Economy and Society (DES). The DES now blocks up to 100,000 illegal websites per month, a tenfold increase from the previous monthly rate of 10,000, DES Minister Prasert Jantararuangtong said. However, challenges remain due to the adaptability of criminal networks and the foreign-based infrastructure of many of these platforms. The update came during a Senate session in parliament yesterday, in response to an inquiry by Senator Dr Premsak Piayura, who raised concerns about ongoing cybercrime -- especially call centre scams, online gambling, and explicit content websites. Dr Premsak questioned why, despite the recent enforcement of the executive decree on the prevention and suppression of technological crime, citizens continue to fall victim to online fraud. "Scammers today are more cunning than ever. Even with repeated warnings, many realise the danger only after they've lost their money," he said. He pointed specifically to mobile operators, who now face increased legal responsibilities under the new law. Dr Premsak also inquired whether the newly established Cyber Crime Suppression Center (CCSC) was effectively functioning and whether inter-agency coordination remained an obstacle, a known weakness in Thai bureaucracy. Mr Prasert assured senators that coordination among agencies has improved, noting that since the decree came into force in May, the government has implemented financial, digital asset, and telecommunications measures, as well as created mechanisms for the reimbursement of victims. He said the CCSC had now been legally formalised and explained its central data platform has strengthened law enforcement's ability to act, significantly reducing the overall damage caused by scams. On the "mule accounts", the minister acknowledged improvements in tracing and shutting them down. However, the more stubborn problem remains the proliferation of gambling and pornographic websites. "In the past, we could only shut down about 10,000 sites a month. But today, with AI developed by the DES Ministry, we're able to block around 100,000 sites monthly," Mr Prasert said. "But the problem hasn't gone away -- these sites continuously change URLs and operate on overseas servers, making it hard to identify the operators and prosecute them." He added that while technical capacity has grown, legal challenges persist, particularly in identifying and taking action against foreign-registered platforms. Dr Premsak, meanwhile, urged the ministry to find ways to pressure foreign platforms, such as Facebook, to take responsibility when their services are used to defraud Thais. "We need to know how to bring these platforms under Thai jurisdiction or involve them in restitution when damage occurs," he emphasised. Mr Prasert reiterated that while technical solutions like AI have increased the government's ability to block harmful content, legal and diplomatic strategies will be needed to tackle foreign-based digital crime infrastructures. He also confirmed that the ministry plans to expand its outreach to vulnerable groups to help them avoid traps and know how to respond if they fall victim.
Bangkok Post
4 hours ago
- Bangkok Post
CRG prudent on opening new restaurants
Central Restaurants Group (CRG) is taking a more cautious approach when it comes to its expansion plans due to the current sluggish economy and weak spending power. The sluggish economy has led to cautious spending behaviour among Thais, said Nath Vongphanich, president of CRG. He noticed that while Bangkok is still showing some signs of resilience, spending on dining out in upcountry areas appears to be a bit weaker. The company is also monitoring raw material and labour costs. He believes there is still potential for growth in the restaurant sector this year, but expects certain segments, such as fine dining, to face challenges during this period. CRG remains resilient amid these challenges. If a prospective customer is experiencing a drop in income, the company has various brands with suitable pricing to serve these individuals, he added. Cautious investment Amid the current economic climate, maintaining healthy cash flow is essential for the company. "We are prudent about opening new restaurant branches or making significant investments," said Mr Nath. Any new restaurant launch will require strong confidence in its profitability. The company is reconsidering its focus on simply expanding the number of outlets and may delay additional openings. Earlier this year, the company announced its target to open 120-140 new restaurant branches this year with about 70 new stores already launched in the first half of 2025. However, in the second half, the company might postpone around 10% of the remaining planned openings, particularly affecting smaller brands under its umbrella. He views that restaurants that are small and medium-sized enterprises may seek partnerships to weather the tough economic conditions. This aligns with CRG's strategy to pursue partnerships with other restaurant brands, especially in the shabu category. He said that Thai diners now have new dining habits. In the past, they tended to end their day with dinner, but now many people are enjoying late-night meals. Competitive environment Mr Nath has observed a competitive business environment and he pointed out that Japanese restaurants continue to dominate in terms of openings. "The food business has a low barrier to entry and also a low survival rate," he said. On the ongoing price war among shabu restaurant brands, he said: "This kind of competition is unhealthy and I wonder how long it can last." He views that with a strong reputation as a food destination, Thailand not only attracts many foreigners to come and enjoy the food available here, but it also entices foreign operators to participate in the market. Navigating tough times To survive the challenges of the current economic climate, Mr Nath recommends restaurants keep their liquidity strong. Consistency is also essential. Diners should receive the same quality of service and taste, regardless of which branch they visit, he noted. He emphasised the importance of having standard operating procedures, including simplified recipes that reduce reliance on individual chefs and enhance operational efficiency. Most importantly, the food must be truly delicious. Mr Nath warned that restaurants that focused solely on the visual appeal or on creating "Instagrammable" moments, while neglecting the core element of taste, are unlikely to build a sustainable business.
Bangkok Post
4 hours ago
- Bangkok Post
Thaksin to attend govt dinner event
Wisut Chainaroon, the chief government whip, has confirmed that former prime minister Thaksin Shinawatra will attend a dinner with coalition parties scheduled for Tuesday. He dismissed concerns that Thaksin's presence may be perceived as an attempt to exert control over his party or the government. Mr Wisut, a list MP of the ruling Pheu Thai Party, said Thaksin's attendance is not unusual, noting that since the current government assumed office two years ago, coalition MPs have only dined together once. However, as certain parties have now left, there is a need for discussion and mutual understanding to reinforce unity and cohesion, particularly in preparation for parliamentary sessions. Addressing criticism that Thaksin's presence could be seen as influencing or dominating the party and government, Mr Wisut clarified that simply sharing a meal and having conversations does not mean exerting control. "Domination involves issuing directives -- telling a political party, its MPs, or the government what to do. If he [Thaksin] merely shares his knowledge and experience, it should be acknowledged that during his time as prime minister, the Thai people were very happy. Drawing upon his experience and advice can be beneficial," Mr Wisut said. "Many of the newer MPs have never had the opportunity to meet or hear directly from Mr Thaksin. For them, this will be a valuable experience," he said. Deputy Prime Minister and Interior Minister Phumtham Wechayachai, who is currently acting as prime minister, said the coalition dinner is part of a regular process allowing MPs from coalition parties to meet, build relationships, foster interaction and exchange views and ideas. He noted that typically, gatherings of this nature are not open to outsiders. "As for the media, further discussions may be needed to determine whether access will be granted for filming," added Mr Phumtham.
