Photo courtesy of TNA

 

Deputy Prime Minister and Finance Minister Pichai Chunhavajira is riding a wave of optimism following productive negotiations with the U.S. Trade Representative (USTR). Pichai announced that Thailand could soon benefit from a U.S. customs duty rate near 20% for Thai products, aligning with regional peers.

 

The promising discussions came after a "win-win" video conference led by "Team Thailand," focusing on securing fairer trade terms with the U.S. Pichai expressed confidence that the talks would yield results before the looming 1 August deadline. Although realistic about not achieving all initial targets, he anticipates a balanced agreement that would favour Thai industries. This adjustment could significantly impact Thailand's trade dynamics, offering a more level playing field with competitors such as Vietnam, which currently faces tariffs of 20% and 40%, determined by Regional Value Content (RVC).

 

Pichai also highlighted the importance of enhancing Thailand's production efficiency to thrive in open markets. The government aims to align increased imports with a boost in domestic manufacturing and exports. Support and protection for Thailand’s agricultural and small to medium-sized enterprises (SMEs) remain top priorities, ensuring these sectors can benefit from potential new trade conditions.

 

The forthcoming decision has broader implications for Thailand's economy, particularly in enhancing competitiveness. Domestic industries could see expanded market access in the U.S., a move that may spur economic growth and job creation.

 

Achieving a lower tariff rate would mean that exports could become more affordable and attractive to U.S. consumers. This development could potentially translate into increased business for Thai manufacturers and suppliers, leading to a more robust presence in the international market.

 

As negotiations progress, all eyes are on the forthcoming announcement, which could redefine Thailand’s trade landscape. Increased efficiency and a strategic approach to production and export could be the key to thriving under new trade conditions.

 

In an unpredictable global economy, Thailand's proactive approach could prove advantageous. With the government backing key industries, the nation positions itself favourably against competitors. The coming days hold significant potential for change, and trade officials and industry leaders alike are keenly watching the progress, hopeful for a favourable outcome that strengthens Thailand's economic ties with the U.S.

 

Stay tuned as developments unfold and final decisions are made, potentially ushering in a new era for Thai exports, competitiveness, and economic growth.

 

  Adapted by ASEAN Now from TNA 2025-07-18

 

 

I expect they will slap 500% on their prawns then, anything else of note? Maybe charge a levy on customers in their "massage" parlours all over the West.

18 hours ago, snoop1130 said:

Achieving a lower tariff rate would mean that exports could become more affordable and attractive to U.S. consumers.

Which may mean that US has a trade deficit as defined by Trump wherein Thailand trade value is less than US trade value. And isn't that situation the very thing Trump is against and basis for his recent tariff?

Trump wants a trade surplus value wherein for example Thailand buys more in value from the US than the US buys from Thailand.  Well, except when that is already the case with several countries and Trump still applied a tariff. 

My point is that Thailand shouldn't get to excited thinking its has negotiated a fair trade agreement. It can show weakness and Trump will and has "move the goal posts" to show strength.

 

Good luck Thailand.

20 minutes ago, Srikcir said:

Which may mean that US has a trade deficit as defined by Trump wherein Thailand trade value is less than US trade value. And isn't that situation the very thing Trump is against and basis for his recent tariff?

Trump wants a trade surplus value wherein for example Thailand buys more in value from the US than the US buys from Thailand.  Well, except when that is already the case with several countries and Trump still applied a tariff. 

My point is that Thailand shouldn't get to excited thinking its has negotiated a fair trade agreement. It can show weakness and Trump will and has "move the goal posts" to show strength.

 

Good luck Thailand.

remember the agreement you think you have this morning will be different to the agreement you have this afternoon and stop firing your bullets before you need to !!!

Thailand forced to act. I can't remember how many posts like just wait Trump will fold and TACO Trump have been posted but reality is countries have to act.

Pichai and the other clowns with him are really hopeless.  They couldn't even arrange a meeting with the US government.  They had to pay US$7 million to a lobbyist firm to get an appointment for them.  Pathetic.

 

On 7/18/2025 at 5:26 PM, snoop1130 said:

The promising discussions came after a "win-win" video conference led by "Team Thailand," focusing on securing fairer trade terms with the U.S

Don’t let him hear you say that! How can a potential 20% on exports be winning? Not one for the whole tariff debacle, but if anywhere was in dire need of being made an example of, Thailand is it. Get 200% on them and see how they react. 🙂

Thaksin stated on Saturday what the Finance minister has already mentioned, but Thaksin gets all the praise from his followers.

 

Thaksin lifts morale of followers as US deal is in the works with a final rate close to that of Vietnam

https://x.com/ThaiExaminer/status/1946723589279162522