Thailand’s 36% US tariff at risk: Will minister secure a deal?
Commerce minister denies 18% tariff, calling it an unofficial estimate
Thailand is on the edge of a crucial trade deadline with the US, and the stakes couldn’t be higher. Finance Minister Pichai Chunhavajira announced today that he will be heading to the US next week for urgent trade negotiations.
With Thailand facing a 36% tariff on its exports unless a deal is struck, time is running out for the kingdom to negotiate a more favourable agreement before the moratorium on tariffs expires in July.
Speaking to reporters, the finance minister confirmed that the talks were scheduled but provided no further details on the agenda. The 36% tariff currently imposed on Thai exports is a significant blow to the nation’s economy, as exports are a key driver of growth. For now, most nations enjoy a 10% tariff due to the moratorium, but that will come to an end soon, and without a reduction, Thailand faces major challenges.
Earlier this month, Commerce Minister Pichai Naripthaphan expressed optimism, stating that Thailand and the United States could come to an agreement that would see the tariff rate reduced to as low as 10%. However, Thailand has also expressed hope that the negotiations could extend beyond the current tariff pause.
Despite speculation in the media, Minister Pichai denied reports of a potential 18% tariff rate, calling it “untrue.” He clarified in a post on X yesterday, June 26, that the 18% figure was simply an estimate used by the Bank of Thailand and economists, not an official agreement.
Thailand has already submitted an official proposal for tariff reduction, following preliminary talks that took place this month. Permanent Secretary for Commerce Vuttikrai Leewiraphan also expressed optimism, noting that Thailand’s proposals stand a strong chance of reducing the tariff to the 10% baseline, reported Bangkok Post.
Minister Pichai’s comments come after Commerce Secretary Howard Lutnick revealed that the United States and China have finalised a trade understanding in Geneva, and that the White House plans to reach agreements with 10 major trading partners soon.
As Thailand prepares to engage in these crucial negotiations, the pressure is on to secure a deal that will protect its economy and maintain its vital export sector.
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