United States is given Thailand's final tariff proposal before the scheduled cut-off date in August.
Thailand and US Trade Negotiations: Progress and Expectations
The latest round of trade negotiations between Thailand and the United States took place on July 17, 2025. The discussions, led by Deputy Prime Minister and Finance Minister Pichai Chunhavajira, focused on tariff and import tariff matters.
Pichai did not specify the exact number of tariff tiers that Thailand might secure, but he emphasised Thailand's strong stance against a zero percent tariff on all U.S. imports. The Southeast Asian nation aims to protect its agricultural sector and domestic businesses, and thus maintains a current tariff rate of 36% on U.S. imports, significantly higher than that of other ASEAN countries.
Thailand has submitted its updated proposals to the U.S. Trade Representative (USTR) and is awaiting a response. The negotiations are progressing at an operational level with minor adjustments under review.
Thailand is optimistic about reaching an agreement that would make its tariffs more competitive with other Southeast Asian nations. However, if a mutually beneficial agreement is not reached by the August 1 deadline, Thailand's tariff rate could remain at 36%.
Details on specific items that may benefit from a 0% tariff rate have not been disclosed, but any such exemptions would be exclusive and require approval from the Thai Parliament.
Pichai Chunhavajira hopes for a reduction in U.S. import tariffs for Thailand, aiming for a rate below 20%. He indicated that there are a few remaining details under review in the final proposal, which is set to be submitted to the USTR on July 23, 2025.
Pichai believes the U.S. will view Thailand's tariff offer from a regional consistency perspective. Over 90% of Thailand's additional offers have already been presented to Washington in ongoing negotiations. The proposal aims to secure import tariff rates close to regional averages.
Thailand is making its utmost effort to finalize the proposal before the August 1 deadline. The forthcoming submission from Thailand represents the "absolute final" offer. Pichai anticipates a response from the USTR before the August 1 deadline.
Sources: [1] The Nation, July 18, 2025. [2] Bangkok Post, July 18, 2025. [3] Reuters, July 19, 2025.
- The reduction in U.S. import tariffs for Thailand, as proposed by Pichai Chunhavajira, could potentially boost tourism and travel between the two countries, contributing positively to both economies.
- The finance minister's aim for a tariff rate below 20% could lead to more competitive business opportunities in areas such as finance, particularly in sectors relying on imports, like travel and tourism.
- The negotiations' outcome could significantly impact the Southeast Asian economy, with the tariff rates determining the competitiveness of Thailand's domestic businesses in multiple sectors, including tourism and finance.
