Thailand Races Against Time to Avoid Crippling 36% US Tariffs in Digital Trade Talks

Thailand has assembled a technical negotiation team to engage with Washington over punitive tariffs, with just weeks remaining before a 36% levy threatens to devastate the kingdom's largest export market

 

The Thai government confirmed yesterday that it has established a high-level technical team following the United States' acceptance of bilateral trade negotiations.

 

Officials are working against a 8 July deadline to conclude talks before Washington imposes retaliatory tariffs that could severely impact Thailand's $35.4 billion trade surplus with America.

 

A Ministry of Commerce source revealed that senior officials will engage directly with the US Trade Representative (USTR) and Department of Commerce via video conference, citing time constraints that prevented Deputy Prime Minister and Finance Minister Pichai Chunhavajira from travelling to Washington.

 


"With only one month remaining before the US's 90-day deadline, there were concerns about time constraints," the source said. "Therefore, negotiations will proceed via online systems, which is similar to negotiating Free Trade Agreements."


 

The talks centre on Thailand's ambitious five-point proposal aimed at reducing its trade surplus with the US by 50% within five years whilst strengthening strategic partnerships between the two nations.
  

 



 

Key negotiation points include:

Thailand plans to dramatically increase imports of American energy products including crude oil, liquefied natural gas, and ethane, alongside aircraft components, military equipment, and agricultural commodities such as maize, soybeans, and beef.

 

The kingdom has also committed to reducing import duties on 11,000 items by 14% under the Most Favoured Nation system, whilst eliminating non-tariff barriers that restrict American agricultural products including cherries, apples, wheat, and meat.

 

Bangkok is particularly keen to address concerns over "Made in Thailand" product misrepresentation, where goods from third countries are trans-shipped through Thailand to the US market. Officials pledge stricter enforcement of rules of origin to protect Thai product integrity.

 

The government is also promoting increased Thai private sector investment in America, particularly in energy projects such as LNG facilities in Alaska and large-scale agricultural ventures.

 

Currently, Thai companies operate 70 investments across 20 US states, creating over 16,000 jobs with a combined value of $16 billion.

 

Poj Aramwattananont, Chairman of the Thai Chamber of Commerce, welcomed Washington's willingness to negotiate as "a positive signal," expressing confidence that Thailand's comprehensive proposal addresses all aspects of tariff reduction.

 


"The negotiations will adhere to the five-point proposal because Thailand's proposal creates trade balance for both sides and is consistent with global regulations," he emphasised.
 
 

However, time pressures are mounting. Poj warned that goods shipped from Thailand today might take over 30 days to reach American ports, potentially missing any tariff relief if negotiations drag on.

 

The stakes are considerable for Thailand's export-dependent economy. In 2024, the United States remained Thailand's primary export destination, accounting for 18.3% of total shipments.

 

Bilateral trade reached $74.5 billion, with Thailand exporting $55.0 billion whilst importing just $19.5 billion.

 

The 36% retaliatory tariff places Thailand 20th among 185 global trading partners and ninth in Asia, behind nations including Cambodia, Laos, Myanmar, Vietnam, Sri Lanka, Iraq, and Bangladesh.

 

Both sides are now racing to conclude negotiations before the deadline, with Thailand's economic future hanging in the balance as it seeks to maintain access to its most lucrative overseas market.

(2025/06/09-00:00)