Thailand’s Finance Minister Pichai convenes meeting with key stakeholders to discuss response to US’s 36% tariff on Thai imports, hoping for successful negotiations.

Deputy Prime Minister and Minister of Finance Pichai Chunhavajira on Thursday called a meeting involving relevant government agencies, the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB), and major private sector exporters to the United States. The meeting focused on discussions regarding Thailand's proposal in negotiations over the US's retaliatory tariffs.

The US recently sent an open letter to the Thai government announcing a 36% tariff on Thai imports, which will come into effect on August 1, 2025.

Pichai stated that preparations for the negotiations must continue in the lead-up to the implementation of the tariffs. The government must be ready for any potential outcome, whether positive, neutral, or otherwise, while assessing the impacts on Thailand’s economy, particularly its export sector. Discussions also involved identifying sectors most affected by the differing tariff rates.

Looking at countries that have reached agreements on tariffs with the US, Pichai noted that the US has established various tariff rates, including those on local products and goods with insufficient Regional Value Content (RVC), leading to varied impacts for different businesses.

"As a result, I have asked business representatives from various sectors to gather information and submit their findings to me by Friday, July 11. This will help in identifying the challenges faced by different businesses and formulating appropriate measures, including pushing for a conclusion in negotiations by July 31," he added.

Poj Aramwatananont, Chairman of the Thai Chamber of Commerce, said that discussions have centred on how the revised proposals would impact the sector. The primary goal of the negotiations is for Thailand to present viable solutions that won’t excessively burden Thai businesses, particularly focusing on imports of goods that Thailand lacks, to satisfy the US and maintain a balanced agreement.

However, concerns have been raised over the 36% tariff rate, which some see as excessive, especially when compared to Vietnam’s higher trade surplus with the US. If Thailand is subject to this tariff, it could severely impact the country’s export sector, which exports around 2 trillion-baht worth of goods to the US, out of a total of 8 trillion baht in exports.

"At this point, it is still difficult to estimate the full impact, as we need to consider the tariff rates of other trading partners and competitors. For some goods, Thailand may not be at a disadvantage, or the disadvantage could vary depending on the type of product," Poj stated.

Regarding the reduction of tariffs on certain US products, such as fruits imported from Australia, New Zealand, and China at 0% under the FTA, a reduction to 0% for US imports would not be a major issue, simply a matter of expanding the market share with the US.

Poj concluded by noting that despite Vietnam facing seemingly higher tariffs, it lacks certain products available in Thailand, and Vietnam’s local content conditions may not be met. This could result in Vietnam being subject to a higher tariff of up to 40%, while Thailand, with its strong upstream and midstream industries, would be better positioned to meet local content requirements.