Composite courtesy of Siam Rath

 

In a significant move, US President Donald Trump announced a 36% tariff on Thai goods, affecting 14 countries. The announcement was confirmed through a post on Truth Social on 8 July, warning that these tariffs could fluctuate based on diplomatic relations.

 

Set as "Reciprocal Tariffs," these measures aim to address the US trade deficit and are slated to commence on 1 August 2025. Other affected nations include Laos and Myanmar at 40%, Cambodia at 36%, and Indonesia at 32%.

 

Despite efforts by the Thai government, led by Deputy PM and Finance Minister Pichai Chunhavachira, negotiations with the US have yet to yield a revision. Pichai, speaking through social media, reassured that dialogues persist, insisting the talks aim for beneficial outcomes for both countries.

 

Assisting these efforts, economic academic Dr Singh Singhkhajorn emphasised the challenges the new tariff presents, particularly given the US is Thailand's largest export market, valued at approximately 1.93 trillion Baht in 2024.

 

Major export items, including computers and telecommunications equipment, could see heightened costs, potentially reducing Thailand's competitive edge in the US market.

 

In comparison, Vietnam faces a 20% tariff, highlighting the competitive disadvantage Thailand might endure. The increased tariff could deter investors, particularly in sectors dependent on US exports.

 

The Thai government faces urgent pressure to negotiate a reduction in these tariffs to maintain its economic stance and attract investors back. Rapid action is crucial before the tariff's implementation on 1 August 2025.

 

In the broader economic context, the impending tariffs threaten to diminish Thai export volumes, with significant impacts expected on the technology and processed food sectors.

 

This calls for immediate preparation and strategic response from both the government and exporters to mitigate adverse outcomes.

 

Reportedly, if negotiations do not reach a favourable resolution, Thailand will face formidable challenges in maintaining its economic alignment with global markets.

 

  Adapted by ASEAN Now from Siam Rath 2025-07-12

 

 

Government by "Truth Social posts"

 

Yet more tariffs plucked from his imagination, announced on his social media platform with no details for implementation, and vague suggestions that the rates may vary depending on diplomatic relations.

 

He really is the global trade equivalent of a school yard bully shouting after people who wear spectacles!

 

No wonder that the rest of the world are beginning to just ignore him. "Silly old fool" doesn't even come close!

Thailand takes another hit - but do not worry, Taksin will save Thailand himself.

 

But more importantly, after 6-months of the Trump-MAGA madness, the world (apart from Israel) is working out how it can get by without the USA.  A few US big businesses are moving OS to avoid global boycotts (how long before Microsoft, Nvida, etc. follow suit?).

 

Maybe within a year the GOP and MAGA will realise that the USA is now alone in the world, and economically sinking fast and deep.  Bye bye USA.

King Don, taking care of business.

Suck it up Thailand.

 

I am wondering how many nations are being driven into the BRICS camp.

 

5 more countries have joined as full members. 10 more are "partner countries" including Thailand and Vietnam.

 

If the tariffs are supposed to counter Chinese influence, I'd say they are having the opposite effect.

12 minutes ago, quake said:

King Don, taking care of business.

He hasn't taken care of anything until it gets through the court of appeals due 31-Jul.

1 minute ago, Lacessit said:

I am wondering how many nations are being driven into the BRICS camp.

 

5 more countries have joined as full members. 10 more are "partner countries" including Thailand and Vietnam.

 

If the tariffs are supposed to counter Chinese influence, I'd say they are having the opposite effect.

 

There's isolationists and then there is common sense.
 

 

UPDATE

 

US Tariff Twist: Thailand Eyes New Talks After Deadline

 

Picture courtesy of The Nation

 

The US has hinted at renegotiating the hefty 36% tariff on Thai imports, despite the looming August 1 deadline. Thai Foreign Minister Maris Sangiampongsa announced this development following talks with US Secretary of State Marco Rubio at the ASEAN Foreign Ministers’ Meeting in Kuala Lumpur.

 

During their first official bilateral discussion, Maris expressed Thailand’s concerns over the tariff, urging the US to reconsider given the two nations' strong diplomatic ties.

 

Rubio assured that President Trump's tariff announcement might still be adjusted through ongoing negotiations, even after it takes effect. This offers Thailand a glimmer of hope as both countries aim to maintain a mutually beneficial partnership.

 

Maris emphasised Thailand's strategic significance to US regional interests, appealing for a more favourable review. With the tariff's fate now hanging in the balance, both nations look set to engage in further dialogue, highlighting the importance of diplomacy in international trade relations.

 

As the August 1 deadline approaches, the focus turns to the negotiations that may shape the economic landscape between the US and Thailand. Whether adjustments can be reached post-deadline remains to be seen, but the commitment to conversations underscores the importance both countries place on their enduring partnership.

 

  Adapted by ASEAN Now from The Nation 2025-07-12

 

 

About time to cite safety concerns after Air India disaster and cancel that Dreamliner orders for Thai Airways.

Doesn't Thsilad impose an 80% tartif on imported American vehicles in order to protect it's own manufacturing. 

Just tell him he can build a Trump Tower in Bangkok, sorted.

1 hour ago, Hardcastle P said:

Doesn't Thsilad impose an 80% tartif on imported American vehicles

 

I believe 80% is the minimum.  Can go as high as 300% for luxury vehicles.

Trump is working very very hard at diminishing American influence, making it less relevant by the day, repulsing the entire planet, making BRICS, China, and the EU stronger and more important, and giving people an excuse to have as little to do with American trade as possible.

 

Mark my words, this is the beginning of the end, and Trump will do irreparable damage that will last decades. 

 

 

Have another taco and wait.

Very easy solution - drop Thai tariffs on US goods.  Easy breezy! 

The White House now treats the rest of the world like a debt collection agency, collecting outstanding debts at will without any comprehensible basis. It's no wonder that willingness to pay is limited.

 

Wall Street sneers at Trump for puffing himself up, but always giving in in the end. And even the deals Trump has made so far are, at best, framework agreements. Or they simply restore the old status quo, which Trump himself had previously destroyed with his tariff threats.

 

The US president has only just reached a fragile ceasefire with China, which will expire in August. The framework agreement on resuming the supply of rare earths, much praised by Trump, has still not been approved by Beijing. It also leaves open the possibility of cutting off supplies of these essential raw materials at any time.

17 minutes ago, connda said:

Very easy solution - drop Thai tariffs on US goods.  Easy breezy! 

Thailand seems to be obsessed with tarrifs, with wine in particular being one of the highest taxed products on the planet, and luxury goods taxed to a degree where it diminishes sales dramatically. The dunces who loves tariffs don't seem to understand you lower taxes, you increase sales, and you make the economy more dynamic. 

5 hours ago, Lacessit said:

I am wondering how many nations are being driven into the BRICS camp.

 

5 more countries have joined as full members. 10 more are "partner countries" including Thailand and Vietnam.

 

If the tariffs are supposed to counter Chinese influence, I'd say they are having the opposite effect.

The tariffs are a punishment for these countries. They <deleted> around and are about to find out

Bad for Thailand's govt.

Bad for Thailand's economy.

Bad for Thai people

Bad for US reputation 

And watch the baht strengthen... again.

 

Here are the tariff rates Thailand imposes on just goods from the European Union, according to ChatGPT.

 

36% is a low number compared to what Thailand imposes on other countries.

 

Thailand has until August 1st to negotiate, so the current numbers aren't final. This could mean Thai companies face lower profits, or they might raise prices for U.S. consumers.

 

Vietnam is likely pleased to see higher rates in neighboring countries, but this seems like a deliberate strategy. The U.S. prefers manufacturing in Vietnam or the Philippines due to their closer location.

 

Remember, Thailand still struggles with poor infrastructure, a lack of skilled workers, and an unstable government, making it a tough place for businesses. As a result, more electronics production might shift to Vietnam.

 

I believe this could split ASEAN, and push countries in the region toward protectionism.

1 hour ago, spidermike007 said:

Trump is working very very hard at diminishing American influence, making it less relevant by the day

Well I guess Trump can stop supplying arms to Ukraine and stop all support for NATO then. Let's see how that goes.

1 hour ago, connda said:

Very easy solution - drop Thai tariffs on US goods.  Easy breezy! 

 

Thai pig farmers would go out of business if tariffs on U.S. arg. imports were removed. 

 

Reality is, Thailand has had a lost decade if not more, with an outdated education system and almost no new investments. Now, they’re trying to boost the economy by handing out cash, but this continues to fail creating lasting growth.

 

Coupled with government instability, this is not a friendly environment to grow a business. This country should AT LEAST be growing 4-6% yearly, now they're lucky if they get 2%. Their economy is deflating, and BoT is unable to lower rates because their population have one of the highest debt levels in SE Asia.

 

Maybe things turn around, and I hope it does! 

3 hours ago, Hardcastle P said:

Doesn't Thsilad impose an 80% tartif on imported American vehicles in order to protect it's own manufacturing. 

and also on many imported current products like wines, cheese etc... even much more than 80%

1 hour ago, connda said:

Very easy solution - drop Thai tariffs on US goods.  Easy breezy! 

Not easy. If Thailand drops tariffs on US rice imports it could ravage the Thai rice farming industry.

Try buying cheese, wine, cerial, goods, beauty creams, etc., from the U.S. in Thailand. (Not to mention any cars or electronics from Japan). The sticker shock is insane, all due to Thailand tarrifs on U.S., Japan, etc. imports. It is about time for a fair playing field and balanced trade.

6 hours ago, webfact said:

During their first official bilateral discussion, Maris expressed Thailand’s concerns over the tariff, urging the US to reconsider given the two nations' strong diplomatic ties.

Screw the ties, this is business.

You've been playing USA long enough, 

33 minutes ago, BLMFem said:

Not easy. If Thailand drops tariffs on US rice imports it could ravage the Thai rice farming industry.

What US rice imports are there to drop tariffs on? Any chance you could show us how many tonnes of US rice is currently imported into Thailand and what the tariff rate is? My understanding is ZERO US rice comes into Thailand. Selling ice to the Eskimos.

An interesting test of Thais' collective nous, speed & subtlety.

 

Not holding my breath.

2 hours ago, spidermike007 said:

Trump is working very very hard at diminishing American influence, making it less relevant by the day, repulsing the entire planet, making BRICS, China, and the EU stronger and more important, and giving people an excuse to have as little to do with American trade as possible.

 

Mark my words, this is the beginning of the end, and Trump will do irreparable damage that will last decades. 

 

 

 

 

 I agree and from now on no one will believe his nonsense and change his mind five times a day.