Thailand confirms ongoing tax talks with the US, awaiting final agreement

Thailand's Deputy PM and Finance Minister confirms ongoing tax negotiations with the US, expects final agreement soon, and addresses border tensions' impact.

Deputy Prime Minister and Finance Minister Pichai Chunhavajira on Tuesday provided an update on the ongoing tax negotiations with the United States, confirming that discussions are still open and Thailand is waiting for a response from the US. He highlighted that the Thai government had already submitted a proposal and expects a final agreement soon.

“We will definitely conclude this soon. Today, we will finalise the details of the agreement,” said Pichai.

When asked whether Thailand would face a 36% tariff, Pichai stated that Thailand should not be subject to such a high rate. He noted that the exact timing of the announcement is still uncertain, with the decision possibly being made either before or after August 1. “It might be announced on the 2nd of August, just a day later. I think it will be soon,” he added.Regarding the ceasefire agreement with Cambodia, which Thailand accepted as part of the negotiations, Pichai mentioned that while it may have a psychological impact on the potential reduction of taxes, he did not focus on that aspect. Instead, he emphasized that the proposal benefits both parties, highlighting the mutual advantages. Another key point raised was that this situation offers an opportunity to enhance the competitiveness of Thai businesses.

In response to concerns about the ongoing border clashes affecting negotiations, Pichai expressed confidence that the US would understand that Thailand cannot fully cease military operations overnight and will need to assess the situation moving forward.

When asked if the deadline could be extended in case no agreement is reached, Pichai confirmed that Thailand is always ready to negotiate, but the decision to extend would depend on the US.

Addressing concerns about the border situation becoming an additional factor in the negotiations, Pichai acknowledged that national security is a priority. “Today, we must focus on the security of our country. Once we resolve the economic issues, we will proceed with what needs to be done,” he concluded.

(2025/07/29-00:00)