- Photo: The Nation/ANN
BANGKOK: Deputy Prime Minister and Finance Minister Pichai Chunhavajira expressed confidence on Wednesday (May 14) that the United States would reduce its import tariff on Thai products from 36% to 10%, citing the positive reception of Thailand’s five key trade proposals.
Thai proposals presented to US trade representative
At a press conference held at Government House at 1pm on Wednesday, Pichai said that Commerce Minister Pichai Naripthaphan had submitted Thailand’s five main proposals to US Trade Representative Jamison Greer on May 8. The proposals aim to address concerns over Thailand’s trade surplus with the US.
High tariff threat prompted swift diplomatic action
The US had earlier threatened to impose a punitive 36% tariff on Thai imports due to the growing trade imbalance. However, Pichai stated that the US was likely to lower the rate to 10% for most products, based on recent diplomatic feedback.
However, Pichai said, he acknowledged that certain sectors—including vehicles and automotive supply chain products—may continue to face higher tariffs.
Thailand’s five proposals to reduce trade tension
Pichai outlined the following five proposals submitted to the US:
1. Strengthening Thai–US economic cooperation
Thailand proposed bilateral collaboration in the goods processing industry, data centres, and AI sector, including negotiations to eliminate tariff and non-tariff trade barriers.
2. Increasing imports from the United States
Thailand committed to importing more US goods, particularly in the areas of energy, agriculture, and the aviation sector (aircraft, components, and services).
Executives from PTT, the Electricity Generating Authority of Thailand, and Electricity Generating Plc recently visited Alaska to explore investment opportunities in the US energy sector.
3. Opening Thai markets to US agricultural products
Thailand agreed to open up more market access for US agricultural exports, including fruits and corn.
4. Enforcing country of origin regulations
Thailand pledged stronger enforcement of rules of origin to ensure transparency in trade practices.
5. Promoting Thai investment in the United States
Thailand will increase its outbound investment in the US. Dr Nalinee Taveesin, President of the Thailand Trade Representatives, led Thai businesses to the SelectUSA Investment Summit 2025 to explore business opportunities in the US.
Positive signals from US Commerce Secretary
Pichai said he believed the proposals were well received, citing the positive tone of US Commerce Secretary Scott Bessent, who spoke favourably about Thailand during the Saudi Arabia Investment Forum on Tuesday. - The Nation/ANN
