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Thailand submits revised tariff proposal to US, open to further negotiations

Monday, July 7


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Regarding concerns over transshipped goods, Pichai said this issue was being considered under a separate category. “Thailand has been cooperating on this matter. In some cases, we’ve invited US officials to work alongside us. This kind of collaboration must continue—it’s not concluded yet.”

When asked whether Thailand would fall into the group of countries receiving letters about higher tariff rates or be among those still negotiating, Pichai said, “We’ll have to wait and see what they decide. We should have clarity in the next two to three days.”

Thailand set to offer 0% import tariffs on several US products

Pichai elaborated that Thailand's proposal had been slightly revised from the original version, with emphasis on two key areas: expediting efforts to rebalance trade with the United States, and facilitating greater bilateral trade by reducing barriers.

Regarding the proposal to offer 0% import tariffs on certain US goods, Pichai said there is a substantial number of products eligible for zero tariffs, though not all would be included.

He stressed that any concessions would be made without disadvantaging Thailand’s existing trading partners. As for agricultural goods, each item would be carefully assessed to determine which ones the country could or could not accept.

“In the US’s view, Thailand’s proposal is considered a good one. But at this stage, it’s too early to say what tariff rate we’ll ultimately receive—whether it will be lower than Vietnam’s or not. We’ll have to wait and see,” he said.

On the issue of the proposed 10% tariff on BRICS-related countries—of which Thailand is a partner—Pichai said, “We need to understand what the US truly intends. At this point, we haven’t made any assessment.”

He added that Thailand is unlikely to be directly affected by this proposed tariff hike, but further evaluation is needed to determine the real implications behind it.

Meanwhile, Finance Ministry Permanent Secretary Lavaron Sangsnit said Thailand’s revised proposal was strong and likely to attract US interest.

He noted that a key aim of the proposal is to help balance trade between the two countries more quickly. In addition to lowering import duties, the Thai proposal also includes increasing purchases from US partners and boosting investment.

“Cutting tariffs alone doesn’t guarantee an improved trade balance. If tariffs are reduced but trade does not increase, the balance will remain unchanged. Thailand’s proposal includes strategies that can genuinely improve the trade balance, and it sends a message to the US that we are not ignoring this issue,” Lavaron said.

He added that resolving non-tariff barriers is also crucial. “Even with a 0% tariff, some products still struggle to enter markets due to licensing requirements or other restrictions. These non-tariff barriers vary across product categories and must be addressed.”

Aircraft and LNG purchases in exchange for lower tariffs

Government spokesman Jirayu Huangsap further explained that Thailand's new proposal has been refined, with clearer details on opening markets for agricultural and industrial products from the United States, as well as increasing purchases of energy and aircraft from US companies.

Regarding market access, Thailand has focused on products that are either in short supply or cannot be produced domestically, ensuring that this will not negatively impact Thai farmers and businesses.

At the same time, the proposal includes reducing non-tariff barriers and improving relevant processes to enhance trade efficiency and competitiveness.

Moreover, Thailand has clearly demonstrated its commitment to purchasing energy from the US, particularly liquefied natural gas (LNG) from projects in Alaska. Thai private companies are in talks to purchase significant volumes of LNG for a period of 20 years.

In addition, several Thai chemical companies have pledged to increase imports of ethane from the US. Furthermore, Thai airlines have signalled plans to purchase more Boeing aircraft.

"The government is determined to protect Thailand’s economy from potential impacts due to US tariff measures. The Thai government, through Team Thailand, has continuously engaged with both domestic stakeholders and US counterparts to develop a well-considered, comprehensive proposal focused on mutual benefits for both countries," Jirayu said.

"We assure that we will continue to negotiate professionally and expedite the process to reach an agreement with the US before the deadline for the suspension of US tariffs."

He added that the government is also preparing measures to support businesses and farmers affected by these tariff measures, should the US announce higher tariffs or implement other measures beyond the initial expectations.

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