PM issues statement on Thailand's stance after 36% US tariff

Prime Minister Paetongtarn Shinawatra issued a statement on Thailand's stance regarding the US trade policy after President Donald Trump announced a 36% import tariff on Thai goods.

Prime Minister Paetongtarn Shinawatra issued a statement on Thursday (April 3, 2025) regarding Thailand's stance on US trade policies after President Donald Trump announced reciprocal tariff measures, including a 10% base import tax on all goods entering the US, with higher rates for countries running trade surpluses. Thailand was affected with a 36% tariff, one of the highest in the ASEAN region. The statement reads:

"The Thai government acknowledges and understands the necessity for the US to address trade imbalances with many of its trading partners through Reciprocal Trade and Tariffs policies. These measures have impacted various US trading partners, and President Trump's approach marks a dynamic shift from previous administrations.

On April 3, 2025, at 4am (Thai time), President Trump announced a new policy during the Liberation Day event, imposing a minimum 10% tariff on imports from all countries. Countries with trade surpluses with the US and those the US perceives as taking advantage, through both tariff and non-tariff barriers, including various fees, will be subject to these new charges.Each country will be subject to adjustments at varying rates, which will be half of the tariff rate calculated by the US based on how much US goods are taxed by that country. For Thailand, the US has set the reciprocal import tariff rate at 36%, which will take effect starting April 9, 2025.

The US government's announcement to increase import tariffs will inevitably impact all trading partners, particularly on US consumer purchasing power, which may struggle with the rapid and significant price hikes of goods.

Therefore, in the long term, Thai exporters should seek new markets with the potential to reduce risks from reliance on a single market. The Thai government recognizes the importance of this and has prepared measures to assist and mitigate the impact on Thai exporters whose primary market is the US.

The government would like to inform the US government that Thailand has signaled its readiness to discuss with the US government at the earliest opportunity to adjust the trade balance in a fair manner for both parties, minimizing the impact on the relevant sectors. A working group on US trade policy, appointed on January 6, 2025, prior to President Trump's official inauguration, has been tasked with this responsibility.The Thai government has been working closely with both the public and private sectors to monitor and assess developments over the past three months. This effort has led to the preparation of "proposals to adjust the trade balance with the US that are substantial enough to encourage the US to enter into negotiations with Thailand" in a manner that minimizes the impact on farmers, consumers, and relevant businesses. At the same time, Thailand may seize this opportunity to restructure production, reduce costs, and enhance long-term competitiveness in certain industries.

Thailand is committed to establishing long-term trade stability and balance with the US. It has sufficient potential to be part of a group of friendly nations for investment (Friend Shoring), where both countries can develop mutually beneficial cooperation in industries with high potential for joint growth in the global market. For example, in the agriculture and food sector, the US has a large supply of agricultural products that Thailand can import, process, and export to global markets. In advanced technology industries, Thailand is a key global producer of Hard Disk Drives, and such equipment is essential for developing the US Data Centre and AI industries.

In conclusion, the Thai government sincerely hopes that under President Trump's leadership, the US government will consider the goal of creating long-term economic security together. Thailand reaffirms its commitment to being a partner and is determined to push for economic cooperation to develop the agricultural sector and the industries of the future for the global market. This will lead to stable growth and ultimately help reduce the impact on the business and agricultural sectors of both countries through constructive negotiations in the near future.

(2025/04/03-00:00)