U.S. tariffs in Thailand reduced by 19%, according to government statement
Thailand has successfully negotiated a significant reduction in US import tariffs, lowering the rate from 36% to 19%. This move is expected to boost Thailand's trade competitiveness in the region and strengthen its position in the US market [1][3].
The tariff reduction, announced by Government Spokesman Jirayu Huangsap, aligns Thailand's tariff rate with key regional competitors like Vietnam, the Philippines, and Japan [3]. This strategic move avoids harsher penalties and preserves Thailand's export industries' cost advantages, especially when compared to other ASEAN countries facing higher tariffs, such as Laos and Myanmar at 40% [1][3].
The reduced tariff rate is likely to increase Thailand's attractiveness to US importers, potentially leading to increased trade volumes and contributing to long-term economic stability [1][3]. Additionally, Thailand's concessions to the US, including near-total tariff exemptions on over 10,000 US import items, easing non-tariff barriers, and opening infrastructure investments to US firms in strategic sectors, are expected to deepen bilateral trade and investment ties [2].
These measures further enhance Thailand's regional position by fostering a more efficient, investor-friendly environment and integrating it more closely into US supply chains, particularly in clean energy, semiconductors/ICT, and logistics [2]. In essence, the 19% US import tariff deal strengthens Thailand's trade competitiveness in the region by reducing export costs to the US, aligning tariffs with major trade partners, and enhancing bilateral trade and investment conditions [1][2][3].
Interestingly, the tariff reduction was also confirmed by US President Donald Trump, securing regional trade parity for Thailand [4]. Meanwhile, Brunei has also revised its US import tariff to 25%, potentially setting a new benchmark for trade negotiations in the region.
[1] "Thailand secures US import tariff reduction to 19%, boosts competitiveness." (URL) [2] "Thailand-US trade deal: What's in it for Thailand?" (URL) [3] "Thailand's new US import tariff rate aligns with regional competitors." (URL) [4] "US President Donald Trump confirms Thailand's US import tariff reduction." (URL)
- The reduction in US import tariffs for Thailand from 36% to 19% could potentially improvise Thailand's economy by increasing its trade competitiveness in the region and strengthening its position in the US market.
- The tariff reduction puts Thailand on par with key regional competitors such as Vietnam, the Philippines, and Japan in terms of tariff rates, thereby preserving its export industries' cost advantages.
- The lower tariff rate may attract more US importers, leading to increased trade volumes, driving long-term economic stability, and contributing to a more efficient, investor-friendly environment in Thailand.
- The deepened bilateral trade and investment ties between Thailand and the US, resulting from the tariff reduction and other concessions, could foster closer integration of Thailand into US supply chains, particularly in sectors such as clean energy, semiconductors/ICT, and logistics.
