Thailand confident of securing lower US tariff with trade offers
The Southeast 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 Tuesday. 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 United States on Sunday to boost bilateral trade volume and reduce its $46 billion trade surplus by 70% 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% of US products,' Mr Pichai said, adding he was 'a bit shocked' by the letter setting the tariff unchanged at 36%.
The US was Thailand's largest goods export market last year, accounting for about 18% of the country's total shipments. Thailand's exports have surged about 15% 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 Southeast Asia's highest household debt and sluggish domestic consumption. Thai officials have estimated that tariff levels of 36% 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.
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