US tariff could cost Thailand 880 billion baht, says Commerce Ministry

Thailand's high-value products exported to the US would be impacted by the reciprocal tariff, causing 880 billion baht in damage to Thailand, the Commerce Ministry said on Friday. 

Commerce Minister Pichai Naripthaphan made this remark followed US President Donald Trump's announcement of a reciprocal tariff of at least 10% on Wednesday, based on the tariffs imposed by countries on US imports and non-tax trade barriers.

Pichai noted that the 37% reciprocal tariff on Thailand was high, adding that Thailand had formed a working team to negotiate a reduction in the US tariff. 

"This tariff increase affects all countries, but we will negotiate with the US to reduce the tariffs, and we hope it will be successful," he said.Echoing Pichai, Commerce Ministry Permanent-Secretary Vuttikrai Leewiraphan described the 37% reciprocal tariff, which will come into effect on April 9, as excessive. 

However, he stated that Thailand is ready to negotiate as soon as the US is prepared. The working team will be led by the Thai ambassador, and the Commerce Minister will join the team for negotiations, he added.

Vuttikrai further explained that Thailand's high-value exports to the US would be impacted by the reciprocal tariff, including mobile phones, electronic components, car tyres, semiconductors, electric transformers, printing components, car parts, gems, air conditioners, cameras, printers, animal feed ingredients, electronic circuits, rice, and refrigerators. 

He noted that the 37% reciprocal tariff could result in losses of up to US$26 billion, or approximately 880 billion baht, for the Thai economy. He emphasised that negotiations are necessary to mitigate the impact, and that the effect on Thailand's export growth target of 2-3% should be reassessed.

The Commerce Ministry Permanent-Secretary explained that Thailand would negotiate to reduce import tariffs on US goods, increase investment in the US energy sector, boost imports of US goods, and lift restrictions affecting the import of US products. 

He stressed that Thailand will negotiate to ensure mutual benefits with the US, covering trade, services, investment, and security, and expressed confidence in the success of the negotiations.

Thanakorn Kasetsuwan, president of the Thai National Shippers' Council, expects Thai exports to grow by 1-3% this year, adding that Thailand could engage with entrepreneurs to help mitigate the impact of the US tariff in the second half of the year.

To lessen the impact of the tariff, he proposed that Thai authorities accelerate negotiations with the US, promote investment in targeted US industries, import products from the US that Thailand needs, and leverage ASEAN+ principles to strengthen bargaining power.

He also suggested that Thailand should expedite and make full use of free trade agreements with trade partners to diversify trade risks.

Thanakorn further stated that Thailand should reform international trade and investment by utilising domestic resources, developing environmentally friendly industries, and embracing high-tech solutions. 



Meanwhile, honorary president of the Thai Rice Exporters Association, Chukiat Opaswong, warned that the US reciprocal tariff would affect Thai rice exports, as Thailand had a market share of over 850,000 tonnes last year.

He expects the reciprocal tariff to push the price of Thai jasmine rice in the US to $1,400 per tonne, compared to Vietnamese rice, which would be priced at $600-700 per tonne. 

He cautioned that US consumers would likely choose Vietnamese rice over Thai rice.

(2025/04/04-00:00)