Thailand unveils 5-Point Trump tariff proposal praised by US Treasury chief

Thailand's 5-point trade proposal to cut its U.S. surplus earns praise from Treasury Secretary Bessent, calling it “very strong” at the Riyadh investment forum.

During a panel discussion at the Saudi Investment Forum in Riyadh, Saudi Arabia, on Tuesday (May 13), US Treasury Secretary Scott Bessent responded to a question from the moderator regarding the potential for trade agreements beyond the recently concluded deal with the United Kingdom.

The US Treasury chief emphasised that the current focus is on forging agreements in Asia. He stated that talks with Japan have been highly productive. Regarding South Korea, he noted that the country is undergoing a leadership transition, but even prior to the elections, Seoul had proactively reached out to the US with very strong proposals.

Bessent also described ongoing discussions with Indonesia, one of the United States’ major trading partners, as progressing positively. He added that Taiwan had submitted excellent proposals.

"And so has Thailand," he said.

Prior to Bessent’s remarks at the Saudi Investment Forum, Thailand’s Deputy Prime Minister and Finance Minister, Pichai Chunhavajira, revealed that the Thai government had submitted a formal trade proposal to Bessent and Jameson Greer, the U.S. Trade Representative (USTR). The proposal outlines five key initiatives aimed at enhancing bilateral trade and reducing Thailand’s trade surplus with the US by 50% within five years.Minister Phichai expressed hope that the proposal would receive a formal response in upcoming negotiations scheduled within the next two weeks.

The five main elements of Thailand’s proposal are as follows:

Strengthening US-Thailand Processed Food Cooperation

Thailand seeks to develop its processed food industry by leveraging the agricultural strengths of both countries. The proposal includes increased imports of US agricultural products as raw materials for food processing in Thailand, with the goal of exporting to global markets. This approach also targets US agricultural sectors that hold significant political influence, particularly among President Donald Trump’s key voter base.

Increasing Imports of US Products

Thailand plans to ramp up imports of essential goods from the US, including crude oil, liquefied natural gas (LNG), ethane, aircraft and parts, military equipment, and key agricultural commodities such as corn, soybeans, and beef. These moves are designed to boost commercial ties and meet domestic economic needs.

Opening Markets and Reducing Trade Barriers

Thailand is committed to lowering tariffs on over 11,000 items under the MFN system by an average of 14%. The proposal also includes the reduction of non-tariff barriers (NTBs) and greater market access for US exports, particularly cherries, apples, wheat, corn, and meat products.Strict Enforcement of Rules of Origin

To address concerns over goods falsely labeled as “Made in Thailand,” the proposal pledges rigorous enforcement of rules of origin laws. This measure aims to prevent third-country goods from being routed through Thailand to the US market, thereby safeguarding the integrity of Thai exports.

Promoting Thai Investment in the US

The Thai government supports private-sector expansion into the US over the next four years, with a focus on energy projects such as LNG investment in Alaska and large-scale agricultural ventures. Currently, Thai businesses operate in 70 locations across 20 US states, supporting more than 16,000 jobs with an investment value of $16 billion.

(2025/05/14-00:00)