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Bangkok Post
07-07-2025
- Business
- Bangkok Post
Thai businesses come out in support of US tariff deal
The private sector supports the revised US tariff proposals and expects a mutually beneficial outcome, says the Thai Chamber of Commerce. Thailand's latest proposal aims to boost bilateral trade volume and reduce Thailand's US$46 billion trade surplus with the US by 70% within five years, with a balance expected in 7-8 years, according to Finance Minister Pichai Chunhavajira. He said the government offered zero tariffs on some US products as part of the new trade proposals. Poj Aramwattananont, chairman of the chamber and the Thai Board of Trade, said the private sector accepts the revised conditions, which include increased purchases of energy and Boeing jets, as well as greater market access for US products. "We expect the US will accept Thailand's proposals, leading to a fair tariff rate that will not disadvantage Thai businesses in comparison with other countries. We want to see mutually beneficial results for both countries," he said. Mr Poj said imposing the initially proposed 36% tariff on Thai products would have severely harmed the Thai economy. "We need to wait for clarity from the US government," he said. Regarding market access for US products and cutting the import tariff to zero, Mr Poj said he anticipated this privilege might not apply to all products. Commerce Minister Jatuporn Buruspat said the ministry is preparing business relief measures in response to the US tariffs, following the submission of revised proposals. He said these measures will be delivered via a relief fund aimed at supporting businesses affected by the potential tariff increases, along with providing soft loans. The government reserved 10 billion baht from its economic stimulus package of 115 billion baht for this purpose, said Mr Jatuporn. "We will engage with all relevant stakeholders and plan to finalise the relief measures as soon as possible. Once concluded, we will present these measures to the cabinet for budget approval," he said.
Bangkok Post
03-07-2025
- Business
- Bangkok Post
Thailand expects tariff deal before deadline
The head of the Thai Chamber of Commerce believes Thailand will finalise a tariff deal with the United States prior to next week's deadline. Poj Aramwattananont also predicts the country will obtain more favourable tariff rates than those negotiated by Vietnam because the US has a larger trade deficit with Vietnam. President Donald Trump on Wednesday announced the US had reached an agreement with Vietnam, charging a 20% tariff on imports of Vietnamese products and a 40% tariff on transshipments. Although this week's negotiations in Washington are the first official round between Thailand and the US, officials have held several online discussions to pave the way for talks. Consequently, Mr Poj expects Thailand will reach an agreement with the US by July 9. If not, Thailand could face a 36% tariff rate, unless Washington has a change of heart or agrees to extend the negotiations. Finance Minister Pichai Chunhavajira was meeting on Thursday morning in Washington with US Treasury Secretary Scott Bessent and US Trade Representative Jamieson Greer, with results from those discussions expected on Friday. 'Vietnam's agreement serves as a benchmark, setting a 40% tariff on goods that transit through Vietnam to the US. We have to see the details of this agreement, including the local content ratio in those products,' said Mr Poj. He said trade circumvention issues in Thailand can be resolved more easily than in Vietnam, which shares a border with China. Mr Poj said Thailand's proposals are not bad, but it remains unclear whether the US has any further demands. Aat Pisanwanich, an adviser on Asean affairs at Intelligence Research Consultant, said Vietnam's deal indicated trade circumvention through Thailand could also face a 40% tariff rate from the US. This would affect Chinese goods such as solar cells, electric motorcycles, batteries and electronic parts. He said Thailand may face a tariff rate similar to Vietnam, or it could be lower due to Vietnam's larger trade surplus with the US, which exceeds US$100 billion, compared to $45 billion for Thailand. Mr Aat predicted Thailand might face a tariff of less than 20%. There is a high possibility that the US will impose a tariff between 15% and 20% on Thai products. Should this occur, Thailand's trade surplus with the US would decrease to approximately $25 billion, based on the value of Thai exports to the US of around $60 billion last year. Thai exports to the US are forecast to decrease by $20 billion to about $40 billion this year, he said. 'Based on Vietnam's deal, Thailand's total exports are projected to grow by 6-7%. In the first half of the year, Thai exports jumped 14%,' said Mr Aat. He said there are growing concerns about Thailand's potential opening market for US goods at a 0% tariff. Goods of most concern include livestock products such as beef and pork. Mr Aat said such a move could jeopardise numerous local farmers and businesses. However, for other agricultural products, such as soybeans and maize, the impact is less alarming because Thailand already relies heavily on imports of these products. Vuttikrai Leewiraphan, permanent secretary for the Ministry of Commerce, said that in addition to the submitted proposal, Finance Minister Pichai presented additional proposals in the discussions with the US this week. 'The US will decide on the tariff rates and we expect some clarity following the meeting on July 3,' he said.
