BANGKOK – Thailand’s Finance Minister, Pichai Chunhavajira, confirmed on Friday that he will lead a high-level delegation to the United States next week for critical trade talks. The negotiations aim to avert the imposition of a 36% U.S. tariff on Thai exports—an outcome that could severely disrupt Thailand’s trade-dependent economy.
While the minister did not provide the exact date or detailed agenda, he emphasized that the discussions are scheduled and confirmed. “The negotiation date has been set,” Pichai told reporters in Bangkok.
Tariff Clock Ticking: Moratorium Ends in July
Currently, Thai exports to the U.S. benefit from a temporary 10% tariff cap under a trade moratorium. However, this relief is set to expire in July 2025, after which Thailand faces a sharp hike to 36%, unless a deal is reached. The elevated tariffs would primarily affect electronics, rubber, and automotive parts—sectors central to Thai economic growth.
Thai Negotiators Aim for 10% Cap
Thailand’s Ministry of Commerce, led by Minister Pichai Naripthaphan, has been optimistic that talks will yield “good terms,” possibly maintaining the 10% rate. On June 20, Thailand submitted its formal proposal to U.S. officials after weeks of working-level discussions.
Permanent Secretary for Commerce Vuttikrai Leewiraphan described the proposal as “strong and competitive,” adding that it presents a credible path to keep tariffs at baseline levels.
Finance Minister Rejects Reports of 18% Compromise
Responding to speculation that the two sides were closing in on an 18% tariff compromise, Minister Pichai Chunhavajira called those reports “untrue.” He clarified that this number was merely an economic estimate used internally by the Bank of Thailand for scenario planning and not reflective of any actual negotiation outcome.
Broader U.S. Trade Push Underway
The Thai talks come amid a broader U.S. initiative to secure revised trade deals. U.S. Commerce Secretary Howard Lutnick confirmed earlier this week that a major trade understanding was finalized with China, and the White House is preparing agreements with 10 other key trading partners.
Strategic Stakes for Thailand
Thailand views these negotiations as pivotal not only to protect its export competitiveness but also to signal its standing as a key U.S. trading partner in the Asia-Pacific region. Any tariff above the 10% threshold could undermine Thai manufacturing and its fragile post-pandemic recovery.
Optimism remains
With just weeks before the moratorium lapses, both sides face increasing pressure to finalize terms. While optimism remains among Thai officials, the outcome will hinge on last-minute diplomacy—and Washington’s broader trade calculus. (zai)
Updates expected next week as talks unfold in Washington.