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.

[khunPer]

7 hours ago, Kildonan said:

Why doesn't the Thai govn not do the sensible policy,, simply reduce the Import tax, on USA  goods?

It is not about custom's duty and tax, Trump is calculating on trade surplus.

[traveller101]

 

15 minutes ago, khunPer said:

It is not about custom's duty and tax, Trump is calculating on trade surplus.

And if there is no trade surplus or as in Australia'scase, the US has a surplus in its favour, you get hit by a 10% Tariff anyway.

In other words, every country gets hit with at least a 10% Tariff.

[Denim]

4 hours ago, edwinchester said:

There goes that Swedish fighter jets deal.

 

 Oh stop Gripen.

[Jingthing]

We all know the 36 percent has nothing to do with Thailand's actual current tariff policy on U.S. imports. That is actually based on trade imbalances -- nothing at all to do with tariffs.

That said, can someone post a credible report on the AVERAGE of the ACTUAL Thai tariff rate on U.S. goods?

It would be useful to know the reality to compare that number to the number based on Trump regime lies.

Not the tariffs on a particular industry type such as wine, but the weighted average of ALL U.S. imports to Thailand.

Trump and maga cult members may not care about facts, but the rest of us really should. 

[Forrests Father]

27 minutes ago, Jingthing said:

We all know the 36 percent has nothing to do with Thailand's actual current tariff policy on U.S. imports. That is actually based on trade imbalances -- nothing at all to do with tariffs.

That said, can someone post a credible report on the AVERAGE of the ACTUAL Thai tariff rate on U.S. goods?

It would be useful to know the reality to compare that number to the number based on Trump regime lies.

Not the tariffs on a particular industry type such as wine, but the weighted average of ALL U.S. imports to Thailand.

Trump and maga cult members may not care about facts, but the rest of us really should. 

The Nation Apr 3rd

“The Prime Minister emphasized that all necessary measures have been prepared, including initial responses and upcoming negotiations. She clarified that while the average tariff rate is 9%, there are specific limits for different product categories, such as corn. The reported 36% figure is based on a new calculation method that has never been used before, requiring further review to find a balanced approach.”

it doesn’t mention anything specific about the US (and wine and car tariffs I assume are not country specific) but at least it makes more sense.
 

[SHA 2 BKK]

8 hours ago, dinsdale said:

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. 

Not sure it will work.  Norfolk Island doesn’t export anything to the USA but got a 29% Tariff.  And how will the penguins and seals of Heard Island negotiate for lower tariffs?

[PETERTHEEATER]

9 hours ago, webfact said:

.........but also meet essential needs for the Thai military.......

Which, I assume, is to increase the current level of APCs in the inventory to enable at least one for every officer of General rank.

[Captor]

20 hours ago, dinsdale said:

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. 

Maybe bying a submarine from US?

[mackayae]

1 hour ago, Captor said:

Maybe bying a submarine from US?

The last offer from Musk was turned down.

[HaoleBoy]

Thailand must be careful with importing seeds from US.  The US, Monsanto is trying to get all nations hooked on their GMO seeds, blackmailed Thailand into buying their corn seeds before (as well as Mexico).  These seeds must be bought every year and they destroy domestic crops (by cross pollination).

 

US made is not always great ... someone brought up US beef and Australia has much better beef thus they won't import US beef.

[JackGats]

On 4/5/2025 at 10:59 AM, watchcat said:

 

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

Well actually they care about farmers much too much. Farming is a holy cow in Thailand.

 

This is also to a lesser extend the case in the EU. In the EU farmers additionally have the right to blockade and paralyse the country. Some Margaret Thatcher would be needed to break the farmers' stranglehold as she did the miners'.

[connda]

Yeah - that's what we need.  More war globally. 

[ozz1]

On 4/5/2025 at 4:24 PM, traveller101 said:

 

And if there is no trade surplus or as in Australia'scase, the US has a surplus in its favour, you get hit by a 10% Tariff anyway.

In other words, every country gets hit with at least a 10% Tariff.

 You forget Australia puts a 10 percent gst on maybe that's why

[JimHuaHin]

More military equipment, more kickbacks for the senior military officers.

[blazes]

The suggestion by these representatives of the Thai ruling class to buy US military technology is, for them, perfectly logical:  the cost of the products  will not affect their bottom line at all.  

No, the cost will be borne entirely by the taxpayers.  Smart.

All's Well that Ends Well.

[traveller101]

On 4/7/2025 at 7:05 AM, ozz1 said:

 You forget Australia puts a 10 percent gst on maybe that's why

You forget that 10% GST (same as VAT) is put on every product sold in Australia - whether imported from anywhere or produced domestically.