White House says Thailand tariff rate is 19%
Washington had threatened to impose a 36% levy on imports from Thailand, Southeast Asia's second-largest economy.
The White House said on Thursday the United States has imposed a 19% tariff on Thai goods. Washington also imposed the same rate on Cambodia.
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Bangkok Post
an hour ago
- Bangkok Post
Tariff of 19% dubbed 'good news'
Despite great relief following the announcement of a 19% US tariff rate on Thai exports on Friday, the business sector remains fraught with concerns, particularly over the plight of Thai small and medium-sized enterprises (SMEs) and the agricultural sector. WAKE-UP CALL Piti Tantakasem, chief executive of TMBThanachart Bank, posted on Friday on his Facebook page that the tariff agreements the US is pursuing globally are reshaping the trade landscape from one based on free trade to a model of conditional trade, with a clear effort to exclude China from international supply chains. In this new scenario, the traditional rules of global trade will no longer apply, he said. Regarding Thailand's agricultural sector, which has long been a tool used in domestic politics, Mr Piti said it faces serious challenges from global powers with fully integrated, high-tech agricultural systems, capable of penetrating even the most entrenched political protections. "If Thailand sees the '19% deal' as a victory and is content with it, this could be 'The Beginning of the End'. But if we take it as a wake-up call to rethink and reform, then this marks 'The New Beginning'," he wrote. Mr Piti emphasised the need for Thailand to re-strategise by shifting the focus of the Board of Investment (BoI). Rather than simply measuring foreign direct investment, the BoI should prioritise building and enhancing national capabilities. He argued that Thailand's manufacturing sector must evolve, from being the "factory of the world" to developing innovative products that are uniquely Thai. Mr Piti urged Thailand to strengthen its domestic supply chains and promote authentic Thai goods to gain a competitive edge in government procurement, meet private sector demand and drive domestic consumption. He also called for clearer distinctions between legitimate businesses and grey-market enterprises, encouraging support for Thai companies that uphold good governance and social responsibility. "This is an opportunity to change, rethink and reform Thailand. This is a new beginning to make Thailand relevant again," said Mr Piti. SUPPORT MEASURES Poj Aramwattananont, chairman of the Thai Chamber of Commerce and the Thai Board of Trade, expressed optimism about Thailand's competitiveness in the region, bolstered by tariff rates now aligned with other Southeast Asian nations. However, he emphasised the urgent need for government measures to support Thai entrepreneurs in adapting to the new US tariff regime. These measures should focus on advancing technology, financing, marketing and trade innovation to help businesses penetrate new markets, said Mr Poj. He also urged Thailand to heed the 40% transshipment rate, warning of penalties if Thai exports are found to violate it. Certain Thai products may face increased scrutiny and Mr Poj called for clearer definitions of regional value content across various product categories. In parallel, he called for the government to formulate strategies to manage rising imports from the US, especially in sectors that may be vulnerable to increased competition. "The chamber believes further negotiations can secure more favourable terms," said Mr Poj. "We hope Team Thailand continues to advocate strongly for the interests of Thai businesses." He also advised exporters to promptly adjust their shipping schedules and cost structures to mitigate the impact of the new tariffs. The private sector stands ready to collaborate with the government, especially in supporting industries likely to be affected by import shifts under evolving regional value chains, said Mr Poj. TOUGH TASKS AHEAD Thai entrepreneurs need to enhance their competitiveness to brace for intensifying competition despite the agreement on a lower tariff rate on Thai exports similar to regional peers, said the Federation of Thai Industries (FTI). While the months-long negotiation with US authorities ended, Thai manufacturers that export to the US need to adapt to the new tariff rules set by the Trump administration. "It is good news amid challenges," said Kriengkrai Thiennukul, chairman of the FTI. The 19% tariff is acceptable because none of the Southeast Asian exporting nations gains an advantage for shipments to the US, he said. However, entrepreneurs with profit margins of less than 10% need to do more homework, said Mr Kriengkrai. "These manufacturers need to reduce costs, increase productivity and talk with their trading partners to avoid passing the financial burden on to consumers," he said. Other companies with high margins should not be significantly affected by the tariffs, said Mr Kriengkrai. Though changes in US policy are expected to disrupt trade, Thai entrepreneurs should take this as an opportunity to lift their competitiveness, he said. One concern is the influx of products redirected to Asian markets due to US tariffs, hampering manufacturers in the region, said an executive in the electrical appliance sector who requested anonymity. Thai manufacturers are advised to adopt more technologies to enhance production processes and reduce costs, said Mr Kriengkrai. "We also need to seek alternative markets other than the US by forging new partnerships," he said. The FTI asked the government to help businesses access financial sources at a time when they face costlier exports. Thai farmers also need help if the government is allowing more imports of US crops in exchange for the 19% tariff rate, said Tanit Sorat, vice-chairman of the Employers' Confederation of Thai Trade and Industry. BURDEN FOR SMES Supree Thongpetch, chairman of the Thai Small and Medium Enterprise Council, which represents 80 member associations, said more than 2 million Thai SMEs that export to the US will face challenges based on the new tariff. He said many of these small businesses rely on online platforms such as eBay and Amazon to sell their products, often avoiding import duties since they typically export in smaller quantities. Their products range from maternity and baby clothing to aroma and spa items. The US currently applies low tariffs or exemptions for certain goods with existing purchase orders. However, the increase to a 19% tariff could put these businesses at a disadvantage as they may struggle with rising costs and lose their competitiveness, said Mr Supree.
Sydney Morning Herald
3 hours ago
- Sydney Morning Herald
Mistakes are forgotten and wishes realised at this luxe Thai hotel
Each autumn on the evening of a full moon, thousands of glowing lanterns are launched across Thailand's rivers as part of the festival of Loy Krathong. Their senders? Locals who believe the homemade offerings represent mistakes of the past and wishes for the future. It is a 100-year-old celebration of promise: let go of negative energy and be rewarded with good fortune by the river gods. The very act of releasing a lantern is a way to send your problems away. A nod to the ancient ritual awaits you at Aman Nai Lert Bangkok, the latest offering from the luxury hotel group which welcomed its first guests in April. The glinting lanterns, known as krathongs, float below a life-like tree sculpture in the lobby – a sight matched only by the century-old Sompong tree the hotel is built around. Its lush branches form a canopy over the ninth-floor infinity pool, in sharp contrast with the capital's skyscrapers. With 52 suites, a spa and wellness centre spanning three levels and a design focus rooted in nature, to stay here is to partake in a transformation of sorts; shake off the weariness and step into the best version of yourself. Of course, it will cost you at $1689 a night. Pegged as an urban sanctuary in the cult-followed Aman portfolio – the third of its kind after Aman Tokyo and Aman New York – Aman Nai Lert Bangkok is set in the cosmopolitan Phatum Wan district and feels distinctly appropriate for the $1 trillion wellness travel-sphere we find ourselves in. Here, luxury is about substance over show. It is about turning inwards to reach your full potential. A holistic endeavour for those whose lives are ruled by a Google calendar, and who already have access to infrared saunas, personal trainers and therapists. Jean-Michel Gathy's architecture firm Denniston was tasked with designing the hotel around the memory of Thai tycoon Lert Sreshthaputra (better known as 'Nai Lert'), from whom the current owners descend. 'It's always a delicate balance between innovation and restraint. Everything must be subtle and refined,' says David Schoonbroodt, Denniston's senior interior designer.
The Age
3 hours ago
- The Age
Mistakes are forgotten and wishes realised at this luxe Thai hotel
Each autumn on the evening of a full moon, thousands of glowing lanterns are launched across Thailand's rivers as part of the festival of Loy Krathong. Their senders? Locals who believe the homemade offerings represent mistakes of the past and wishes for the future. It is a 100-year-old celebration of promise: let go of negative energy and be rewarded with good fortune by the river gods. The very act of releasing a lantern is a way to send your problems away. A nod to the ancient ritual awaits you at Aman Nai Lert Bangkok, the latest offering from the luxury hotel group which welcomed its first guests in April. The glinting lanterns, known as krathongs, float below a life-like tree sculpture in the lobby – a sight matched only by the century-old Sompong tree the hotel is built around. Its lush branches form a canopy over the ninth-floor infinity pool, in sharp contrast with the capital's skyscrapers. With 52 suites, a spa and wellness centre spanning three levels and a design focus rooted in nature, to stay here is to partake in a transformation of sorts; shake off the weariness and step into the best version of yourself. Of course, it will cost you at $1689 a night. Pegged as an urban sanctuary in the cult-followed Aman portfolio – the third of its kind after Aman Tokyo and Aman New York – Aman Nai Lert Bangkok is set in the cosmopolitan Phatum Wan district and feels distinctly appropriate for the $1 trillion wellness travel-sphere we find ourselves in. Here, luxury is about substance over show. It is about turning inwards to reach your full potential. A holistic endeavour for those whose lives are ruled by a Google calendar, and who already have access to infrared saunas, personal trainers and therapists. Jean-Michel Gathy's architecture firm Denniston was tasked with designing the hotel around the memory of Thai tycoon Lert Sreshthaputra (better known as 'Nai Lert'), from whom the current owners descend. 'It's always a delicate balance between innovation and restraint. Everything must be subtle and refined,' says David Schoonbroodt, Denniston's senior interior designer.
