Economy Trump Dishes Out 36% Tariffs in Shock Move Against Thailand

[webfact]

Picture courtesy of Thai PBS World via AFP

 

In a bold trade manoeuvre, US President Donald Trump has imposed a hefty 36% tariff on Thai imports. This significant levy is part of a sweeping action targeting over twelve countries, with the new tariffs set to take effect on 1st August 2025.

 

Thailand finds itself in the crosshairs as Trump aims to secure more favourable trade conditions for the United States.

 

The broad strategy covers various nations with tariffs ranging from 25% to 40%, depending on the country. The tariffs are as follows:

 

• Japan and South Korea: 25%
• Malaysia, Tunisia, Kazakhstan: 25%
• South Africa, Bosnia & Herzegovina: 30%
• Indonesia: 32%
• Bangladesh, Serbia: 35%
• Cambodia and Thailand: 36%
• Laos and Myanmar: 40%

Originally introduced in April, these tariffs were paused for 90 days, allowing for negotiations. However, Trump has extended the pause to 1st August through an executive order, granting extra time for affected nations.

 

The pause came into effect after the tariffs were first announced in April and then suspended until July 9th. In recent communications, Trump has issued formal letters to the countries concerned, clearly outlining the looming consequences should they fail to seal a deal before the deadline.

 

The move raises questions about potential impacts on international relations and economic stability. The increased tariffs might lead to higher costs for US consumers, as well as strain on diplomatic ties.

 

As negotiations continue, eyes are on the affected countries to see how they will respond to secure better trade conditions.

 

This latest trade action underscores Trump's aggressive approach to international commerce, as the US seeks to renegotiate terms with key economic partners. Whether the initiative will yield the desired results remains to be seen, with the clock ticking towards the August deadline.

 

 

  Adapted by ASEAN Now from Thai PBS World 2025-07-08

 

 

 

[ozz1]

Wow that's not good for exports time to lower baht and look for other export markets

[anchadian]

And the letter is addressed to a deputy PM not the acting PM.

Letter also sent to the King of Thailand.

[redwood1]

Well the weed shops will make up the difference in lost income...

[CallumWK]

22 minutes ago, webfact said:

In a bold trade manoeuvre, US President Donald Trump has imposed a hefty 36% tariff on Thai imports.

 

To be extended, aka TACO'ed, shortly before August 1.

[amykat]

Do we have new rules for the use of CAPITALS …was there an executive order about that ?

[Will B Good]

3 minutes ago, amykat said:

Do we have new rules for the use of CAPITALS …was there an executive order about that ?

 

It depends who you are.

 

Some are allowed use oversized/undersized coloured fonts, italics, capitals.......

 

 

[dinsdale]

I'm thinking Thai arrogance had a role to play. Well they've got a few more weeks to recognise Trump has more economic power and the only way to reduce the 36% is to accept Trump has the upper hand. Like Vietnam has done. Vietnam will surge whilst Thailand will suffer.

[TheAppletons]

2 minutes ago, dinsdale said:

I'm thinking Thai arrogance had a role to play. Well they've got a few more weeks to recognise Trump has more economic power and the only way to reduce the 36% is to accept Trump has the upper hand. Like Vietnam has done. Vietnam will surge whilst Thailand will suffer.

 

  Funny, I'm thinking Trump's arrogance had the largest role to play.

[soalbundy]

Many working class Americans can't even afford a 'Big Mac', and are maxed out on their credit cards while, although workers get hourly pay rises to compensate for inflation, their hours get cut due to falling demand and yet foreign producers should see America as a good market to sell their products. Thailand should do what many other countries are doing, find other markets and circumvent the bully. 

[John Drake]

Transshipment tariffs will be even higher. Probably a lot higher than Vietnam's 40 percent.

[StayinThailand2much]

Thailand not #1... Laos and Myanmar beat it. 😆 

[webfact]

Trump’s Tariff Bomb Hits Thailand: Economy on Edge

 

Picture courtesy of The Thaiger

 

President Donald Trump has ignited a fresh trade war with hefty tariffs on key trading partners, including Thailand. The surprising 36% levies have sent markets reeling and allies fuming, as they brace for the economic impact.

 

Announced this week, the tariffs take effect from August 1 and target a mix of nations, including Japan and South Korea with a 25% levy, while Thailand and Cambodia face a steeper 36%.

 

Laos and Myanmar were slapped with a massive 40% duty. Trump’s stern message on social media implied that these actions are just the beginning of a broader trade strategy.

 

The tariffs, deemed "reciprocal," highlight continued friction in global trade. Trump’s administration confirmed twelve countries received direct notifications, with potential negotiations on the horizon. Despite a brief 90-day reduction in duties to 10%, the clock now ticks towards the August deadline, with uncertainty looming.

 

Countries with limited trade connections to the U.S., like Kazakhstan, also find themselves on the list, facing a 25% tariff. Even Myanmar, struggling post-coup, is hit hard with a 40% tax on its exports. Malaysia and others unexpectedly join the lineup, sparking broader concerns.

 

In a customary Trumpian warning, any retaliatory tariffs by these nations could see their levies increased further. Existing duties on certain sectors, like autos and steel, compound the potential hit, particularly for major exporters like Japan and South Korea.

 

The financial markets reacted swiftly. The S&P 500 and Nasdaq saw a drop of 0.8%, U.S. Treasury bonds slipped, and the dollar surged. Asian currencies, including the Japanese yen and South Korean won, dropped over 1%, while automotive stocks also declined.

 

Economically, Trump’s tariffs are seen as a hurdle for U.S. businesses, with potential price hikes for American consumers. Critics point to the true cost falling on U.S. importers, not foreign countries, challenging Trump’s narrative.

 

Japan’s upcoming elections and South Korea’s new presidency add political layers to the situation. The EU has, for now, dodged the immediate impact but remains watchful for further developments.

 

Trump hinted at additional tariffs for countries aligning with the BRICS bloc, pushing the narrative that this is just one phase of a broader economic strategy. However, legal challenges loom, with a U.S. federal court scrutinising the legality of these tariffs.

 

Domestically, Trump’s actions place him at odds with the Federal Reserve. Chairman Jerome Powell has resisted calls for interest rate cuts, wary of inflationary pressures spurred by tariff-driven costs.

 

Analysts warn that if Trump proceeds with full tariff implementation, import duties could skyrocket, hitting American households amid slowing economic growth. The tariffs are seen by some as a move to renegotiate trade terms, while others view them as economic brinkmanship with potential repercussions for the everyday consumer.

 

For now, Trump’s ultimatum is clear: cooperate or face economic penalties. As more tariff letters circulate, the world braces for a prolonged trade conflict under Trump’s assertive lead.

 

  Adapted by ASEAN Now from The Thaiger 2025-07-08

 

 

[dinsdale]

1 minute ago, TheAppletons said:

 

  Funny, I'm thinking Trump's arrogance had the largest role to play.

A big part of Trump's election campaign were tariffs. He's keeping yet another campaign promise. You can buy into the democrat/MSM doomsday rhetoric or wait and see what happens with the US economy.   

[Will B Good]

2 minutes ago, webfact said:

Economically, Trump’s tariffs are seen as a hurdle for U.S. businesses, with potential price hikes for American consumers. Critics point to the true cost falling on U.S. importers, not foreign countries, challenging Trump’s narrative.

 

No....this can't be correct.....can it?

[dinsdale]

3 minutes ago, John Drake said:

Transshipment tariffs will be even higher. Probably a lot higher than Vietnam's 40 percent.

Transshipment aka relabeling Chinese goods so China can evade tariffs on those goods.

[angryguy]

Absolutely devastating for thailand, and they completely deserve it

[novacova]

2 minutes ago, angryguy said:

Absolutely devastating for thailand, and they completely deserve it

No worries, they’ll come around, eventually.

[Will B Good]

 

 

I expect to see the Thai baht strengthen considerably on this news.

[Karma80]

He writes like a child. A post US world should be in the sights on most of Asia now.

[JBChiangRai]

It was clearly a big mistake for Thailand to align itself with BRICS

 

However, I am really disappointed with all the countries negotiating with Trump. There is only one way to deal with a bully, and that is to fight back and give him a bloody nose.  Playing his game means he wins.

[ikke1959]

Thailand taxes all EU and US articles too heavily... So why complain if other countries are doing the same??

[GeorgeCross]

14 minutes ago, Will B Good said:

 

No....this can't be correct.....can it?

depends if non-us manufacturers wish to keep their market share or end up on the shelves of america's "villa market" equivalents

[GeorgeCross]

1 minute ago, JBChiangRai said:

It was clearly a big mistake for Thailand to align itself with BRICS

 

However, I am really disappointed with all the countries negotiating with Trump. There is only one way to deal with a bully, and that is to fight back and give him a bloody nose.  Playing his game means he wins.

 

and not playing his game means you 100% lose. access to another countries market is not a right its a privilege. as non-thai manufacturers are well aware

[Digitalbanana]

I wonder how much work went into generating these letters, that all look they've be written by AI? The Myanmar letter is particularly ludicrous and tone deaf to the situation of that country where its peoples are fighting a civil war and facing human rights issues by the junta who the USA graciously addresses.

[0ffshore360]

21 minutes ago, angryguy said:

Absolutely devastating for thailand, and they completely deserve it

And the US deserves Trump !

[transam]

Thailand must think about how much tax and duty they have been charging for car imports for a very long time. Could add up to 200%.

So I don't think LOS has much to complain about........

[JoePai]

34 minutes ago, dinsdale said:

A big part of Trump's election campaign were tariffs. He's keeping yet another campaign promise. You can buy into the democrat/MSM doomsday rhetoric or wait and see what happens with the US economy.   

We are seeing already - it's on the way down  555

[smedly]

41 minutes ago, dinsdale said:

I'm thinking Thai arrogance had a role to play. Well they've got a few more weeks to recognise Trump has more economic power and the only way to reduce the 36% is to accept Trump has the upper hand. Like Vietnam has done. Vietnam will surge whilst Thailand will suffer.

what does it cost to import goods from the US or Europe or the UK, it might no be labeled as tariff but it amounts to the same thing, Thailand needs to smell the cheese and realise the game is up

[dinsdale]

1 minute ago, JoePai said:

We are seeing already - it's on the way down  555

Correct. Fuel prices down. Core inflation down a bit but not increasing. Going up though are blue collar jobs and investment.