Thailand Eyes US Arms Deals to Slash Trade Surplus Amid Tariffs

[webfact]

File photo courtesy of Benar News

 

Thailand is urged to boost its purchase of US military technology to cut down a hefty trade surplus. The Federation of Thai Industries (FTI) suggests this could ease the sting of new US tariffs that President Donald Trump has slapped on Thai exports. The move is considered a possible antidote to the looming 36% tariff scheduled to kick in on April 9.

 

FTI chairman Kriengkrai Thiennukul believes acquiring pricey US military goods will not only help reduce Thailand’s surplus but also meet essential needs for the Thai military. With the trade surplus being the 11th largest globally, exceeding 1.2 trillion baht, action is needed to remedy the situation.

 

Another consideration is increasing purchases of US agricultural raw materials, though this needs careful examination to avoid negatively impacting Thai farmers.

 

The FTI has promptly requested detailed reports from 47 sectors on the tariff effects, seeking strategies to navigate Washington's policies. In addition to military purchases, Trump has also implemented a 25% tariff on foreign car and auto parts, a move designed to nudge US companies back to domestic production.

 

 

 

Thai auto parts, significantly cheaper than their US-manufactured counterparts, form a key export to Ford Motor’s operations in the US.

 

Further, Nipatsin Yimyam, of the FTI’s Petroleum Exploration and Production Industry Club, suggests expanding imports of US fuel, particularly liquefied natural gas. They predict the new tariffs could dent Thailand’s GDP by a concerning 1%, or 1.7 trillion baht.

 

These defensive strategies are in focus as Thailand braces for the economic impacts of the tariff imposition.

 

The collective efforts aim to protect Thai industries while addressing the trade deficit with the US. As the situation evolves, Thai officials and businesses remain scrutinising avenues that might balance this financial tightrope.

 

Based on a story by Bangkok Post

 

-- 2025-04-05

 

 

[dinsdale]

Negotiate. Military equipment sure but how about starting with vehicles and alcohol. Trump is doing what he does and that's to force people's hands. 

[Kildonan]

Why doesn't the Thai govn not do the sensible policy,, simply reduce the Import tax, on USA  goods? The high importation tax that Thailand has been imposing,, is why they are being penalised. Karma? 

[Tropicalevo]

1 hour ago, webfact said:

Thailand is urged to boost its purchase of US military technology to cut down a hefty trade surplus

 

Not going to happen, sorry.

Thailand's elite are firmly making their bed ready for China.

[JackGats]

I'd much prefer Thailand stopped overtaxing foreign (US) food so that eating Western food didn't cost me an eye and a leg. I have no use for military equipment thank you.

[watchcat]

3 hours ago, webfact said:

Another consideration is increasing purchases of US agricultural raw materials, though this needs careful examination to avoid negatively impacting Thai farmers.

 

Since when did the government and the filthy rich care about thai farmers?

[metisdead]

A post with misattributed content and a reply has been removed.

[edwinchester]

There goes that Swedish fighter jets deal.

[thesetat]

2 hours ago, Tropicalevo said:

 

Not going to happen, sorry.

Thailand's elite are firmly making their bed ready for China.

If the Us does sell it to Thailand. They better make sure it does not have anything inside that China can use as leverage against the US. Surely, China will have their hands in any equipment the US sells to Thailand

[John Drake]

The US should not go for any military purchase deal with Thailand. The Thais will simply commit without paying and then when it finally comes time to pay up and take delivery, they'll cancel. They're just hoping to string things along with this type trick.

[nakhonandy]

Considering this is more about trade deficit than tariffs, it's a possibility. 

Reducing the importance duty on certain products would make more sense.

Food and drink. Western food, lower the duty on that, most Thai don't eat it anyhow, so no competition there.

Wine and spirits is an obvious one, Thailand doesn't make anything that compares with the west so wouldn't lose too much.

Thais will still buy Hong Thong etc because of the price.

[BigBilly]

4 hours ago, Kildonan said:

Why doesn't the Thai govn not do the sensible policy,, simply reduce the Import tax, on USA  goods? The high importation tax that Thailand has been imposing,, is why they are being penalised.

 

That's not the reason they were penalized.  The trade deficit alone is how Trump's tariffs were calculated.  

 

https://www.abc.net.au/news/2025-04-04/how-were-trumps-tariffs-calculated/105136808

[hotchilli]

5 hours ago, webfact said:

FTI chairman Kriengkrai Thiennukul believes acquiring pricey US military goods will not only help reduce Thailand’s surplus but also meet essential needs for the Thai military. With the trade surplus being the 11th largest globally, exceeding 1.2 trillion baht, action is needed to remedy the situation.

Buy what you want to decrease the trade surplus... the tariff is a different issues that you still have to address.

Drop your tariffs or the 37% on Thai imports to USA stands.

 

[hotchilli]

5 hours ago, webfact said:

Another consideration is increasing purchases of US agricultural raw materials, though this needs careful examination to avoid negatively impacting Thai farmers.

Oh what to do, what to do.