US tariffs on Thailand expected to change in August
Markets watch closely amid uncertainty over new trade terms
US tariffs on Thailand are anticipated to be announced on August 1 or August 2, with the rate expected to change from the current 36%, according to Finance Minister Pichai Chunhavajira.
After achieving an unconditional ceasefire agreement along the Thai-Cambodian border, Pichai stated that negotiations with the US are progressing, with most issues resolved and only a few remaining. He mentioned that the tariff rate should not remain at 36% and that the US announcement could happen on either August 1 or August 2.
US President Donald Trump had previously stated on X that, should Thailand and Cambodia fail to agree on a ceasefire, the US would halt tariff negotiations with both nations. Following the ceasefire, Trump instructed US officials to recommence trade discussions with the two countries.
Pichai noted that both national security and economic matters must be considered, and the proposals submitted offer benefits to both sides while providing Thailand with opportunities to enhance the competitiveness of its private sector.
Pichai also addressed the government’s plans to support people in the seven provinces along the Thai-Cambodian border affected by the conflict. Up to 10 billion baht (US$308 million) is slated to be allocated for relief efforts. The Finance Ministry is contemplating relief measures for the 160,000 people displaced during the week-long skirmish.
The funding, estimated at 10 billion baht (US$308 million), may partly derive from the remaining 25 billion baht (US$770 million) in the economic stimulus budget, which would be used for housing repairs and reconstruction for affected residents. Additionally, income support measures for evacuees who lost income and compensation for property damage are being evaluated by the ministry.
For residents in the seven border provinces, the Comptroller-General’s Department has increased the emergency advance budget for provincial governors from 20 million baht to 100 million baht (US$616 million to 3 billion).
Tax measures include extending the tax filing deadline to September 30 and introducing tax relief that allows deductions of up to 100,000 baht (US$3,080) for home repairs and up to 30,000 baht (US$925) for vehicle repairs due to conflict-related damage, reported Bangkok Post.
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