Thailand Braces for Impact of Potential US Tariffs Amidst Tense Trade Talks

[snoop1130]

File photo for reference only

 

Thailand could face a significant economic setback, losing up to $8 billion if the US imposes reciprocal tariffs on Thai goods. Senior officials revealed this concern today, April 2, amidst looming trade tensions with the United States.

 

Vuttikrai Leewiraphan, a high-ranking commerce ministry official, indicated that Thai semiconductor exports could be subjected to a steep 25 percent tariff under new trade barriers expected from US President Donald Trump. Currently, Thailand imposes tariffs around 11 percent higher than the US on agricultural and industrial goods, and aligning these could result in substantial financial losses between $7 billion to $8 billion.

 

To offset potential US tariffs, Thailand is strategising to increase imports of commodities like corn, soybeans, crude oil, and ethane, aiming to decrease its trade surplus. Notably, exports are vital to Thailand's economy, the second-largest in Southeast Asia.

 

 

 

Commerce ministry statistics reveal Thailand's $35.4 billion trade surplus with the US last year. However, the US reports a larger deficit, pegging it at $45.6 billion.

 

Amid these developments, Sirilak Niyom from the foreign ministry affirmed Thailand's readiness for trade negotiations. Highlighting the country's significant investment in the US, Sirilak pointed out that Thai companies have infused $17 billion across various sectors, including food, real estate, and auto parts, generating employment for 11,000 Americans.

 

As the situation evolves, Thailand's focus remains on diplomatic strategies to mitigate the adverse effects of upcoming US trade measures, emphasising its economic contributions and cooperative spirit in international trade relations, reported Thai Newsroom.

 

-- 2025-04-02

 

 

[John Drake]

 

3 hours ago, snoop1130 said:

Amid these developments, Sirilak Niyom from the foreign ministry affirmed Thailand's readiness for trade negotiations.

 

I just read that Vietnam today announced it is cutting its tariffs on US goods to zero. I don't think "negotiations" are what the US has in mind.

 

https://en.vietnamplus.vn/vietnam-cuts-import-taxes-on-key-goods-ahead-of-us-tariff-announcement-post312690.vnp

[Pouatchee]

Maybe time thailand wskes up... 35 billion trade surplus aint small potatoes. I kinda get why trump is pushing back... my hope is that when i go to villas or foodland someday to see ghe price of my grocery basket come down. The thais do over charge for things imported to a degree that is abusive. Wishful thinking most likely on my part

[KhunLA]

Couple key words ...

... "Thailand could face a significant economic setback, losing up to $8 billion if the US imposes reciprocal tariffs on Thai goods." ...

 

Highly unlikely ... IMHO ... especially since USA doesn't have a trading deficit with TH.

[ukrules]

Ah so Trump finally did what was needed, reciprocity. Good to see it.

Would be nice if a few other major countries did the same thing.

Tax the imports and be taxed right back. Simple. No negotiations are required at all.

 

[ukrules]

18 minutes ago, KhunLA said:

Highly unlikely ... IMHO ... especially since USA doesn't have a trading deficit with TH.

 

Oh really.

In 2024, the U.S. goods trade deficit with Thailand was $45.6 billion, marking an 11.7% increase from the previous year. This means that the U.S. imported more goods from Thailand than it exported to Thailand during that period.

 

Data can be found here : https://www.fool.com/research/us-trade-balance/

[Paul45]

6 hours ago, John Drake said:

 

 

I just read that Vietnam today announced it is cutting its tariffs on US goods to zero. I don't think "negotiations" are what the US has in mind.

 

https://en.vietnamplus.vn/vietnam-cuts-import-taxes-on-key-goods-ahead-of-us-tariff-announcement-post312690.vnp

 

Not cut to zero. Not even close.  These are just token cuts for show on items Vietnam imports near zero of anyway. 

 

"Import taxes on automobiles, for instance, have dropped from 64% to 50%"

 

 

[kwilco]

In 2024, Thailand exported 42,000 passenger cars and 20 CMVs to the American market. Value around 12 billion dollars. Import duties on foreign cars to Thailand are between 200 and 300%

[Paul45]

1 hour ago, KhunLA said:

 

Highly unlikely ... IMHO ... especially since USA doesn't have a trading deficit with TH.

 

Definitely wrong about that.  Thailand is on Trump's naughty list of countries with the highest trade deficits.

[Trip Hop]

It’s worst than they expected. 36% ooft!

[blaze master]

3 hours ago, Pouatchee said:

Maybe time thailand wskes up... 35 billion trade surplus aint small potatoes. I kinda get why trump is pushing back... my hope is that when i go to villas or foodland someday to see ghe price of my grocery basket come down. The thais do over charge for things imported to a degree that is abusive. Wishful thinking most likely on my part

 

Wishful indeed. 

[Paul45]

Just now, Trip Hop said:

It’s worst than they expected. 36% ooft!

 

Ouch.  Good night Thai economy.

 

I doubt these will last long though.  When US inflation skyrockets, the republicans in congress might grow a spine and override these.

[norsurin]

Thailand get 36% tariffs.Vel done.Cambodia 46%..china 49% and so on. 

Good luck in ur future..this is just the start.

[ourmanflint]

Ooft indeed! Thailand losing friends across the globe, EU unhappy about Uighyrs and now USA killing exports at a stroke, but at least they have China

[norsurin]

And now up to 36%>U decerved it.Dualpricing etc..rips of foreigners everyday..KARMA its called.

[KhunLA]

3 hours ago, ukrules said:

 

Oh really.

In 2024, the U.S. goods trade deficit with Thailand was $45.6 billion, marking an 11.7% increase from the previous year. This means that the U.S. imported more goods from Thailand than it exported to Thailand during that period.

 

Data can be found here : https://www.fool.com/research/us-trade-balance/

 

2 hours ago, Paul45 said:

 

Definitely wrong about that.  Thailand is on Trump's naughty list of countries with the highest trade deficits.

Oops...sit corrected. 

[hotchilli]

15 hours ago, snoop1130 said:

Vuttikrai Leewiraphan, a high-ranking commerce ministry official, indicated that Thai semiconductor exports could be subjected to a steep 25 percent tariff under new trade barriers expected from US President Donald Trump. Currently, Thailand imposes tariffs around 11 percent higher than the US on agricultural and industrial goods, and aligning these could result in substantial financial losses between $7 billion to $8 billion.

Welcome to the real world and reciprycol tariffs..

[newbee2022]

15 hours ago, snoop1130 said:

generating employment for 11,000 Americans.

Sack them all

[wwest5829]

15 hours ago, John Drake said:

 

 

I just read that Vietnam today announced it is cutting its tariffs on US goods to zero. I don't think "negotiations" are what the US has in mind.

 

https://en.vietnamplus.vn/vietnam-cuts-import-taxes-on-key-goods-ahead-of-us-tariff-announcement-post312690.vnp

Speak loudly and extort from everyone. Show them who is the boss! Dear Global Citizens … this American opposes vehemently what is being done to my country and by extension to all of us whether a U.S. citizen or not. I cannot apologize as I absolutely dis not help bring this about.

[connda]

And why not.  I actually was very surprised when I saw the lists of counties imposing massive tariffs on the US.
And Thailand is right in the mix, surprise, surprise.  Thailand levies approximately 72% tariffs on the US, and the US now only imposes half that amount or 36% on Thailand.  Personally I'd like to see quid pro quo and have the US imposed the same tariffs on other countries as they impose on the US.  Yeah, as far as global tariffs goes, the US is the red-headed step-child and economic whipping boy of the rest of the world when it comes to tariffs. 

 

[connda]

16 hours ago, John Drake said:

I just read that Vietnam today announced it is cutting its tariffs on US goods to zero. I don't think "negotiations" are what the US has in mind.

And if Thailand doesn't follow suit, it will definitely lose market share to Vietnam.

[thailand49]

Take Trump name out of the equation now is it right or wrong!  If you understand the man his form of " Art of the deal " he will shoot for the sky that is his approach as to when he talks!  but all he wants and anyone wants is meet him at the middle.

 

Even before his re-election it was noted last time what Thailand was doing, they were already reaching the red line which they are far over now!  prior and still doing it and I have lots of family in China doing business, many companies with ties to Thailand would ship their goods to Thailand have it repackage as Thai to avoid the tariffs, 

 

I don't care who is President, this should have been down long long ago, there is pain but the buck stops now. Lets be reasonable and fair.

[Yagoda]

37 minutes ago, wwest5829 said:

Speak loudly and extort from everyone. Show them who is the boss! Dear Global Citizens … this American opposes vehemently what is being done to my country and by extension to all of us whether a U.S. citizen or not. I cannot apologize as I absolutely dis not help bring this about.

Nice. Rather see your fellow citizens suffer. 

 

We are the Boss. If you dont like it, should you be taking advantage of all that our country gives you?

[connda]

11 hours ago, Pouatchee said:

my hope is that when i go to villas or foodland someday to see ghe price of my grocery basket come down.

Really, when a box of Cheeze-Its cost the equivalent of $15+ bucks and a box of Cream of Wheat costs close to $18+ bucks, you know the US is being taken advantage of by Thailand. I go to Rimping and just shake my head at the price of US food items that I know have been marked up by 2-times, 3-times, or more than what they cost in the US.  Needless to say I don't buy much in the way of farang food.  Items like Olive Oil which is a staple in my cooking I buy and simply ignore the price.  But discretionary items like snack foods I simply ignore.  Of course with that said, I tend to eat healthier.  Lots of inexpensive fruits and vegetables for the local market, and meats like pork, chicken, and items like eggs which cost significantly less here in Thailand. So yeah - I'd like to see Thailand smacked along side the head with the US tariff stick.  Like you said, maybe those items from  home might become more affordable.

[connda]

8 hours ago, Trip Hop said:

It’s worst than they expected. 36% ooft!

Well, yeahhhhh. Thailand is hitting the US with 72%.  Really, 36% isn't even reciprocity.

[JonnyF]

19 hours ago, snoop1130 said:

Amid these developments, Sirilak Niyom from the foreign ministry affirmed Thailand's readiness for trade negotiations.

 

About time.

 

You've been ripping off America for far too long. Either drop the extortionate tariffs on American imports or see your exports crumble.

 

Like they say in Thailand, Up to You.

 

Cheap Californian wine, cheap Harley's, cheap Mustangs and cheap Jack Daniels could be just around the corner for us expats if Thailand has any sense. 

 

Thankyou Mr Trump. 

[S Mart]

12 hours ago, KhunLA said:

Couple key words ...

... "Thailand could face a significant economic setback, losing up to $8 billion if the US imposes reciprocal tariffs on Thai goods." ...

 

Highly unlikely ... IMHO ... especially since USA doesn't have a trading deficit with TH.

What have you been smoking.🤣

[John Drake]

Should have bought the F16s. But enjoy your Gripens.

[S Mart]

Just now, S Mart said:

What have you been smoking.🤣

When US pays tariffs and Thailand doesnt are you saying that doesn’t create trade deficit.

Keep on smoking.. But read Economics 101 while your at itx

[KhunLA]

18 minutes ago, S Mart said:

What have you been smoking.🤣

Already conceded, I should have Googled before posting ...

 

... in the future, try not to kick a man when he's already down 😎

 

And ... I got more crap here than I can smoke.  Think I over bought, especially since I rarely indulge.   Smoked half a doobie last month, and might smoke the other have this month ... maybe