Economy US Mum on Thailand’s Bid to Slash Import Tariffs to Zero

[webfact]

Picture courtesy of Amarin TV

 

Thailand awaits the US's silence on a bold proposal to slash import duties on thousands of American goods to zero. Deputy Prime Minister Pichai Chunhavajira revealed that the proposal, made on July 17, aimed to avoid a hefty 36% tariff on Thai exports. Unlike Vietnam and Indonesia, which settled at 20% and 19% tariffs, Thailand’s hopes for acceptance are uncertain.

 

Pichai highlighted the potential impact on domestic businesses, cautioning that granting zero tariffs to the US could lead to demands from other nations. He stressed that any deal must ensure mutual benefits, particularly safeguarding vulnerable sectors like agriculture. Despite attempts, an official response from the US remains elusive.

 

Meanwhile, the European Union is devising stronger counter-strategies against the US amidst dimming prospects for a trade agreement. Following US President Donald Trump’s threat of a 30% tariff starting August 1, EU officials, including Trade Commissioner Maros Sefcovic, have been exploring options to retaliate if needed.

 

EU countries, with Germany leading the charge, are leaning towards "anti-coercion" measures, potentially affecting US access to public tenders or services. The European Commission's plans hinge on a qualified majority to activate such strategies, previously envisioned for pressure from China but now considered for the US.

 

With the looming August 6 deadline, the EU faces critical decisions on activating suspended tariffs and whether to use its “anti-coercion” instrument (ACI). French support for the ACI contrasts with hesitance elsewhere, as President Trump warns of retaliation against any actions taken.

 

The EU’s strategic response may involve limits on US investment, intellectual property rights, and the sale of US goods in Europe. European Commission President Ursula von der Leyen has suggested the ACI as a measure for exceptional circumstances, hinting that action remains on the horizon, reported Thai Newsroom.

 

As tensions heighten, the global trade landscape awaits pivotal shifts with potential impacts spanning agriculture, automotive industries, and more. The US's silence places increasing pressure on Thailand and the EU to secure favourable outcomes amid a volatile trade environment.

 

  Adapted by ASEAN Now from Thai Newsroom 2025-07-22