Thailand advances in trade talks with the US, eyeing zero tariffs on selected imports
Thailand and US in Final Stages of Tariff Negotiations
Thailand and the United States are in the final stages of tariff negotiations, with a significant expansion of imports subject to 0% tariffs on the table. The Thai government has proposed a 0% tariff on many US imports, now expanded to cover up to 90% of items under bilateral trade talks.
The final tariff document was exchanged between Thai officials and the US Trade Representative on July 29, 2025, and minor revisions have been made. The Thai government expects to align with a tariff rate of about 19%, similar to rates agreed with other ASEAN countries. The US has imposed a 19% reciprocal tariff on Thai exports.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira announced the tariff negotiations with the US. The Thai government has agreed to proceed with the joint Thai-US statement for tariff negotiations, which has been approved by the Cabinet.
The Thai government is finalising all details within a month. Some imports may require quotas, and discussions are ongoing with the Federation of Thai Industries and the Thai Chamber of Commerce to develop targeted assistance strategies for specific business groups.
Regarding the timeline for Parliament presentation, no specific date is mentioned for when Thailand will present the proposal to its Parliament. However, negotiations are concluding near the August 1, 2025 deadline. The focus now is on the US side to finalize and announce the tariff rates, after which Thailand presumably will proceed with internal steps such as presenting the proposal domestically.
The Thai government has prepared measures to assist businesses affected by the US tariffs, including providing soft loans and using funds to enhance long-term competitiveness. Some imports will immediately benefit from a 0% tariff, while others will require time to adjust. Regarding the specific negotiations on purchases from the US, issues such as the Rule of Origin will need further discussion to determine the final approach.
The US President is expected to announce the official tariff rates within 1-2 days after July 29. Once the tariff rates are announced, Thailand will move forward with the necessary domestic procedures to implement the new tariff structure.
- The expansion of imports subject to 0% tariffs in the final tariff document between Thailand and the US may significantly impact various industries in the Thai economy.
- The US President's announcement of the official tariff rates will influence the finance sector as it may affect the exchange rates and investment opportunities in both countries.
- The Thai government's proposed 0% tariff on many US imports represents a strategic move in the broader context of general-news events involving trade agreements and international politics.
- The government's measures to assist businesses affected by US tariffs reflect an ongoing commitment towards the health and prosperity of Thai industries.
