Thailand confident of securing lower US tariff with trade offers
The US was Thailand's largest goods export market in 2024, accounting for about 18 per cent of the country's total shipments.
BANGKOK - Thailand remains optimistic about securing a lower tariff rate than the 36 per cent levy announced by President Donald Trump based on an offer to bring down import tax on most US goods to zero, according to Finance Minister Pichai Chunhavajira.
The South-east Asian nation expects to wrap up trade negotiations before the Aug 1 deadline set by the US, Mr Pichai told a local television channel on July 8 .
Mr Trump has set the levy on Thailand without taking into account its revised proposals to increase market access by removing tariff and non-tariff barriers on a number of goods, he said.
In a last-minute bid to avoid the punitive tariff, Thailand had submitted a revised proposal to the US on July 6 to boost bilateral trade volume and reduce its US$46 billion (S$58.7 billion) trade surplus by 70 per cent within five years.
The offers included greater market access for US farm and industrial goods, as well as increased purchases of energy and Boeing jets.
The latest Thai proposal 'is a good deal for the US and Thailand will lower import tariffs on 90 per cent of US products', Mr Pichai said, adding he was 'a bit shocked' by the letter setting the tariff unchanged at 36 per cent.
The US was Thailand's largest goods export market in 2024 , accounting for about 18 per cent of the country's total shipments.
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Thailand's exports have surged about 15 per cent 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.
Clinching a lower US tariff rate is key to insulating Thailand's trade-dependent economy from further downside.
Growth is already under pressure from South-east Asia's highest household debt and sluggish domestic consumption. Thai officials have estimated that tariff levels of 36 per cent could shave of at least one percentage point off gross domestic product this year.
Investors have also been concerned by political turmoil following the court-ordered suspension of Prime Minister Paetongtarn Shinawatra over alleged ethical misconduct in handling a border dispute with Cambodia. BLOOMBERG
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