BANGKOK — Thailand’s government announced Friday it successfully negotiated a 19% tariff rate with the United States, significantly lower than the initially threatened 36%, while preparing comprehensive support measures for affected businesses and farmers.

President Donald Trump had threatened to impose the tariffs on August 1 but delayed the deadline to August 7, just hours before they were supposed to take effect. Thailand reached the deal narrowly after agreeing to a ceasefire with Cambodia on July 28, ending nearly a week of border clashes that killed at least 41 people. Cambodia received a 19% tariff rate as well.

Deputy Prime Minister and Finance Minister Pichai announced on social media Friday morning: “The 19% tariff rate reflects strong Thai-US friendship and keeps Thailand globally competitive while boosting investor confidence and creating new economic opportunities.”

He later confirmed discussions focused on economics and trade, not natural gas or security, covering four areas: tariff rates, bilateral trade items, investment plans, and non-tariff measures.

Goods exported before August 7 reaching the US will face 10% tariffs, while those leaving Thailand after August 7 will face 19%. Next steps will go to Cabinet.

Work Not Yet Finished

Pichai acknowledged that despite feeling relieved, the work is not yet finished as Thailand must urgently address technical, legal, and domestic measures to maximize benefits from this cooperation and accelerate adaptation to build a strong, resilient economy ready for future global challenges.

He revealed that the government has prepared support measures including soft loans, subsidies, tax relief, and regulatory reforms to help businesses and farmers cope with the Trump administration’s tariff policies.

“The government recognizes impacts on entrepreneurs and farmers, so we’ve prepared comprehensive support: budget allocations, soft loans, subsidies, tax measures, and regulatory reforms to help Thailand adapt to the future economy,” Pichai said.

Economic and Investment Impact

Thailand currently imports 20 billion baht ($610 million) in US goods, which may increase slightly. The government aims for exports to grow equal to or more than imports, especially processed and high-value Thai products.

Thai investment in the US will focus on agriculture processing, particularly where US raw materials could be processed and shipped back to Thailand or sold in US markets. “We’ve offered 0% to other countries in FTAs, so we might do the same with the US since we have no issues with those products,” Pichai said.

Thailand uses 1.2 million barrels of crude oil daily from multiple countries. It could potentially increase US imports by 10% if prices and conditions are favorable, with contracts expected to start in 2026.

Regional Competitiveness Maintained

Government spokesman Jirayu Houngsap confirmed Thailand’s successful negotiation of reciprocal tariffs with the United States, securing the 19% rate that aligns with other regional countries including Vietnam, Philippines, and Japan. This positioning allows Thailand to maintain competitiveness against other ASEAN nations, he said.

“It represents a major success for Team Thailand using a win-win approach to secure the country’s export base and long-term economic security,” Jirayu stated. He did not immediately disclose Thailand’s latest offer to the United States during negotiations.

Thai Chamber of Commerce Applauds Negotiation Success

Poj Aramwattananont, Chairman of the Thai Chamber of Commerce and Board of Trade of Thailand, praised “Team Thailand” for achieving the 19% rate, which closely matches tariffs imposed on other ASEAN countries such as Indonesia (19%) and Vietnam (20%).

“Although this rate is higher than the baseline 10%, it represents excellent work considering Thailand initially faced reports of a potential 36% tariff,” Poj said. “The negotiating team’s ability to reduce this figure to 19% within a limited timeframe demonstrates genuine commitment, strategic understanding, and proactive operational capabilities.”

The Chamber believes Thailand can remain regionally competitive with tariff rates similar to other ASEAN countries, but supports government consideration of additional support measures. These should include promoting Thai business expansion into new markets and preparing for increased US tariffs through technology, financial, marketing, and trade innovation support measures.

The Chamber also emphasized the need to closely monitor the 40% “transshipment rate” the US has set for all countries, as well as preparing contingency plans for importing goods from the United States.

“The Thai Chamber of Commerce is preparing clear proposals for the government now that we know the tariff rates for Thailand and other countries. We need support measures, assistance programs, and initiatives to boost new capabilities so Thai businesses can adapt and stay competitive under the new global trade rules,” Dr. Poj said.