Economy Thailand Races to Renegotiate US Tariffs as 36% Hike Sparks Alarm

[webfact]

Thailand Races to Renegotiate US Tariffs as 36% Hike Sparks Alarm

 

Picture courtesy of Thai PBS World

 

Finance Minister Pichai Chunhavajira expressed surprise at the US decision to slap a hefty 36% tariff on Thai goods but remains hopeful for a negotiation breakthrough before the looming 1st August deadline.

 

The unexpected notification from the White House arrived prior to the original 9th July cutoff, possibly overlooking Thailand's recent revised tariff proposal from 6th July.

 

Pichai anticipates that the upcoming negotiation round will be crucial, with the US administration likely expecting intensive discussions. With 20 days remaining, he hopes for a reduction in the proposed tariff, considering Thailand’s adjustments in its proposals.

 

In the latest proposal, Thailand has committed to drastically reducing tariffs on approximately 90% of US imports and completely eliminating them for certain items. However, around 10% of US imports remain untouched, due to the need to protect local businesses and maintain existing free trade agreements with other countries.

 

Pichai also emphasised the need for economic reform in Thailand, aiming to decrease reliance on exports by bolstering the agricultural sector and refining the tourism industry to boost confidence.

 

On another note, Acting Prime Minister Phumtham Wechayachai voiced his desire for a more favourable arrangement than the steep 36% tariff.

 

The outcome of these negotiations could have significant implications for Thai-US trade relations and the broader economic landscape, as both nations navigate this tariff turmoil.

 

  Adapted by ASEAN Now from Thai PBS World 2025-07-09

 

 

[ukrules]

36% is far too low, it's time to pay

 

Also if Trump was serious about 'reciprocity' he would ban Thais from holding more than 49% in US companies and prohibit land purchases. That would be reciprocity. Grind them into the ground.

[JoePai]

Does not look he could 'rush' anywhere

[ikke1959]

Maybe they can start to negotiate again on the 29 or 30th because in Thailand everything is last minute... Thailand should first lower their extreme import taxes on goods from the West before starting to negotiate

[JimHuaHin]

Karma can be a real bitch some time.

 

Xenophobic Thailand punished by xenophobic TACO.

[JonnyF]

Thailand doesn't seem to like it when the shoe is on the other foot.

 

The amount of import tax on US goods here is ridiculous. 

[sscc]

Trump does not know how to end this tariff fiasco. 

So setting July 7 deadline,  re-setting Aug 1 deadline.    

(  If it was indeed "Liberation",  why not go ahead in full steam right from the beginning on April 2, 2025  ?  )

 

[SLOWHAND225]

4 minutes ago, sscc said:

Trump does not know how to end this tariff fiasco. 

So setting July 7 deadline,  re-setting Aug 1 deadline.    

(  If it was indeed "Liberation",  why not go ahead in full steam right from the beginning on April 2, 2025  ?  )

 

 

Tell me you know nothing about negotiating, without telling me. lol

[angryguy]

14 minutes ago, sscc said:

Trump does not know how to end this tariff fiasco. 

So setting July 7 deadline,  re-setting Aug 1 deadline.    

(  If it was indeed "Liberation",  why not go ahead in full steam right from the beginning on April 2, 2025  ?  )

 

It doesnt really matter what the deadline is. Thailand will wait until the last minute and fail to get anything done

[FlorC]

6 hours ago, webfact said:

Finance Minister Pichai Chunhavajira expressed surprise

Really ?

 

A likely solution for Thailand would be : lower tariffs on US goods

and higher tariffs on european goods to compensate.

(and yes I know they have some kind of trade agreement with the euro's,

but you don't see that in imported euro goods prices).

[JonnyF]

58 minutes ago, FlorC said:

A likely solution for Thailand would be : lower tariffs on US goods

and higher tariffs on european goods to compensate.

 

That would be the sensible thing to do. 

 

The EU is weak. It would wring it's hands, clutch it's pearls and then do nothing. The US has a strong leader now and Thailand knows it. 

[norsurin]

Surprised??? Really?? They think their in a special position i guess and when they realize their NOT panic taking them.Vietnam takes over everything because their smart not gready at all time.

[Jedi888]

I looked at the usd baht chart. I see 3 indicators the baht will start going down + the fundamental indicator which is the news of the 36%.

 

• Double bottom (resistance) on this chart, which is weekly.
• Blip of 3 bar head and shoulders, a reversal indicator, final bar forming today
• MACD about to cross zero line, a classic kicker
• News that exports are going to drop now, which will make demand for baht be less from exports etc.

Don't forget tourism is lower, so less demand for baht. The fact that the baht is this high now..... a total fkn dead cat bounce / divergence situation... it is NOT based in reality!

 

Hello 36 baby you are a coming soon. 

[frank83628]

Seems the word 'negotiations' has fallen from everyones vocabulary since 20th January 2025

[Hakuna Matata]

7 hours ago, webfact said:

However, around 10% of US imports remain untouched, due to the need to protect local businesses and maintain existing free trade agreements with other countries.

 

What is this? 

 

❓ 

 

Quote

maintain existing free trade agreements with other countries

 

[khunjeff]

7 hours ago, webfact said:

around 10% of US imports remain untouched, due to the need to protect local businesses

 

Thailand consistently excels at "too little, too late". I don't support this tariff war at all, but Vietnam read the room correctly, and Thailand refuses to do so.

[Hakuna Matata]

2 hours ago, angryguy said:

It doesnt really matter what the deadline is. Thailand will wait until the last minute and fail to get anything done

 

This is Thainess, isn't it?

 

😥

[Formaleins]

Please if you have any sense, do not allow them to open their mouths as I would expect that given their usual competency, the tariffs will be "cleverly renegotiated" at 46% -  Everything that this government touches is like the reverse Midas touch, a sort of magical fecal touch!

[Hakuna Matata]

1 minute ago, Formaleins said:

Please if you have any sense, do not allow them to open their mouths as I would expect that given their usual competency, the tariffs will be "cleverly renegotiated" at 46% -  Everything that this government touches is like the reverse Midas touch, a sort of magical fecal touch!

 

Absolutely! Please reinstate the good old Prayut. 💥

[Quentin Zen]

Who's your daddy?  will be a fun game, coming soon.

 

Shhhhh....or it goes to 195%.    One more word and.... can you say 13948%?

 

When you bring a pencil to fight a tank, B2 bomber and 78 Navy Seals, you better hope this a movie script for John Wick Pattaya, because in real life things don't work out.

 

American passport, VIP treatment at Immigration.  I'll bring my own brown envelope.  

[TroubleandGrumpy]

6 hours ago, ukrules said:

36% is far too low, it's time to pay

 

Also if Trump was serious about 'reciprocity' he would ban Thais from holding more than 49% in US companies and prohibit land purchases. That would be reciprocity. Grind them into the ground.

Hopefully the 'Trump Effect' will spread around the world and the Governments of all countries will again start doing their jobs - looking after the interests of its own citizens - first.  Not saying they are good systems of Governments, but it seems to me that China and Russia are doing what is best for their people first. Sure Democracy has many advantages over Communism, but neither of those Governments are looking after the citizens of other countries at the expense of their own.  IMO it was an inevitable outcome from the formation of the UN - powerful centralised organisations will always believe that they have the answers to everything. The truth is that all the UN will ever achieve is to make everyone equally poor, hungry and ignorant - but they will all be equal.  The forum created for the exchange of issues and problems in order to avert another world war, has degenerated into an uncontrolled mish mash of minority interests and BS causes lead by unelected mandarins. 

[hotchilli]

3 hours ago, JonnyF said:

Thailand doesn't seem to like it when the shoe is on the other foot.

 

The amount of import tax on US goods here is ridiculous. 

Thailand needs to follow Vietnam's lead.... stop playing games and get into the real world.

[TroubleandGrumpy]

22 minutes ago, khunjeff said:

 

Thailand consistently excels at "too little, too late". I don't support this tariff war at all, but Vietnam read the room correctly, and Thailand refuses to do so.

Dead right - Thailand still thinks they are 'special' and deserve special treatment.  I was talking with a bloke the other week about the benefits of colonialisation - we could feel the wokes squirming on their stools.  Besides the imposition of organised and structured Government and Legal institutions, and the associated improvements in everything from language to educational and medical services - it also gives the people the ability to 'have a say' through their democratic rights. Thailand is still being run and controlled by those who have power and wealth - mainly with Chinese ancestry. Thailand needed to be colonised to put in place the structures that were needed, and to then give the people the opportunity to 'rebel' and take back what they want and keep what they want.  Like a teenager - rebelling is part of growing up and is a necessary process - Thailand has never really 'grown up' - they still live in their parent's basement.

 

Offering free/cheap Visas and beaches and girls is not enough anymore - this trade issue is but one of many things that is showing Thailand to be 'stuck in the past' - the world changed because of Covid. They are still a Provincially based amalgamation of isolated and ignorant Thiefdoms - with the biggest one being Bangkok - and they dont give a rat's rear end about the rest of the country.  Playing both sides and leaning towards China too much in the recent past, is coming back at them hard - so they are doubling down rather than folding and taking the loss.  I hope Trump's team hits them with 40% and that the inevitable economic collapse forever changes Thailand - from top to bottom.  

[Sir Dude]

The Thais want to get the same deal as Vietnam... and Vietnam basically dropped all tariffs on US goods to zero, agreed to 40% on any goods deemed to be from elsewhere by the US at 40%, and still 20% on all Vietnamese goods. Thailand is going to have to take a deep breath and swallow hard to emulate that... and Thailand is nowhere near as strategicly important to the US as Vietnam is.

[wwest5829]

So, I should start formulating my letter of thanks for forcing a serious reduction on California red wines? Hey! It’s medicinal!

[PETERTHEEATER]

9 hours ago, webfact said:

Finance Minister Pichai Chunhavajira expressed surprise at the US decision to slap a hefty 36% tariff on Thai goods but remains hopeful for a negotiation breakthrough before the looming 1st August deadline.

 

He's surprised? If the Finance Minister was not aware this was coming I suggest he retires.

[cdulaney]

Go to the grocery store and buy a container of Peanut Butter and see how expensive it is for an example. I could ramble on with the items that are outlandish, but I am sure you have seen this during your trek to the store.

[SMIAI]

Container of peanut butter as little as 50 baht per jar. What's wrong with that? Unless you are referring to poor quality American imports. Then yes, they are overpriced...even if they were 50 baht.

Do they have anything with no additives over there?

 

[TheFishman1]

Thailand is charging too much tax on imported goods from America TIT

[portisaacozzy]

12 hours ago, webfact said:

Thailand Races to Renegotiate US Tariffs as 36% Hike Sparks Alarm

 

Picture courtesy of Thai PBS World

 

Finance Minister Pichai Chunhavajira expressed surprise at the US decision to slap a hefty 36% tariff on Thai goods but remains hopeful for a negotiation breakthrough before the looming 1st August deadline.

 

The unexpected notification from the White House arrived prior to the original 9th July cutoff, possibly overlooking Thailand's recent revised tariff proposal from 6th July.

 

Pichai anticipates that the upcoming negotiation round will be crucial, with the US administration likely expecting intensive discussions. With 20 days remaining, he hopes for a reduction in the proposed tariff, considering Thailand’s adjustments in its proposals.

 

In the latest proposal, Thailand has committed to drastically reducing tariffs on approximately 90% of US imports and completely eliminating them for certain items. However, around 10% of US imports remain untouched, due to the need to protect local businesses and maintain existing free trade agreements with other countries.

 

Pichai also emphasised the need for economic reform in Thailand, aiming to decrease reliance on exports by bolstering the agricultural sector and refining the tourism industry to boost confidence.

 

On another note, Acting Prime Minister Phumtham Wechayachai voiced his desire for a more favourable arrangement than the steep 36% tariff.

 

The outcome of these negotiations could have significant implications for Thai-US trade relations and the broader economic landscape, as both nations navigate this tariff turmoil.

 

  Adapted by ASEAN Now from Thai PBS World 2025-07-09

 

 

they saw it coming but new how to handle Tump