No deal struck on US tariffs

Bangkok Post

18 hours ago

Thailand has yet to conclude negotiations with the United States on reciprocal tariffs but has gained 'valuable insights' that will guide the development of a revised proposal, Deputy Prime Minister Pichai Chunhavajira said on Friday.
Speaking during a live broadcast on X while transiting through South Korea on his way back to Thailand, Mr Pichai said that initial trade talks had made encouraging progress, despite no final agreement being reached.
He gave no indication about when further talks might take place, even as a July 9 deadline looms to reach a deal. In the absence of a deal, Washington could impose a 36% tariff on all imports from Thailand as soon as Wednesday, compared with the 10% baseline tariff in effect now.
President Donald Trump has conceded that negotiating trade deals with dozens of countries has proved impractical. As a result, Washington plans to unilaterally decide final tariff rates and send out letters to many trade partners, he said.
Thailand is believed to be among a handful of countries that might get a reprieve because talks are sufficiently advanced, but that is just speculation at this point.
Mr Pichai, who led the Thai delegation in Washington, said he held high-level discussions with senior US government officials and representatives from major American corporations with significant long-term investments in Thailand. He also held formal policy talks with US Trade Representative Jamieson Greer and the Deputy Secretary of the Treasury.
'We received significant feedback that reaffirmed the United States' confidence in Thailand as a long-standing economic partner,' he said. 'This lays a solid foundation for further negotiations.'
The discussions helped Thai officials better understand US expectations, Mr Pichai added, noting that these insights would shape a new proposal addressing concerns from both sides.
'The talks were constructive. Although a conclusive outcome was not reached, the US appreciated Thailand's proactive approach,' he said. 'We will return with a new proposal that ensures mutual benefit.
'Our position remains firm that the final deal must be practical, sustainable, and a win-win for both sides,' he said. 'We have to work hard to refine Thailand's proposal to ensure the success of the negotiation and benefits of the two sides.' (Story continues below)
Thai officials being realistic
In Bangkok, meanwhile, Deputy Finance Minister Julapun Amornvivat said Thai officials were taking a realistic view of events and were prepared for any outcome.
'We are not viewing the tax negotiations with the US as a worst-case scenario, as we have been preparing for them since President Trump took office and then announced the reciprocal tariff policy on April 2,' he said.
'We are aware of the US demands, such as the need to address issues related to transshipment, or goods falsely claimed as originating from Thailand for export to the US.
'Discussions have already taken place and are heading in a positive direction. But if you're asking whether we hope to return to the best-case scenario — such as the point before the 10% tariff was imposed — then we must admit the reality: there's no way to go back to that original point,' he said.
'Everyone in the world knows this. Ultimately, we have to move forward towards a new balance that will result from the negotiations. If you ask which tariff group we'll end up in, I must admit deep down that we hope to be in the 10% basket.'
Mr Julapun said Thailand has a long-standing relationship with the US and holds a stronger negotiating position than Vietnam, as Thai exports are more globally diversified and not so heavily reliant on the US market as those of Vietnam.
Vietnam, which has agreed on a new trade deal with the US, sends roughly 30% of its exports to the US, while the figure for Thailand is only 18%.