Economy US Imposes 19% Tariff on Thailand in Major Trade Shift

[webfact]

Image source: The White House
 

In a bold move, the United States has set a 19% reciprocal tariff on Thailand. This decision, revealed by the White House, implicates nearly 100 other countries in a sweeping trade manoeuvre.

 

Initially, Thailand faced a steep 36% tariff beginning 2nd April 2025, which triggered intense negotiations over the past three months. During deliberations, Thailand steadfastly maintained limited access for US products, contrasting with Vietnam, which accepted a 20% tariff while opening its markets entirely.

 

Meanwhile, Indonesia and Malaysia also received a 19% tariff, yet mutually agreed to full access for American goods.

 

Thailand's firm stance highlights the challenges of balancing domestic interests with international trade pressures.

 

The implications of this tariff adjustment could ripple through various sectors, affecting prices and market accessibility.

 

As the situation continues to unfold, both countries will monitor the impact on trade dynamics. This tariff change provides a vital glimpse into the complex world of global trade relations.

 

  Adapted by ASEAN Now from Thai Enquirer 2025-08-01

 

 

 

 

[KhaoHom]

It will be interesting to see if Thailand honors the terms. It's not always simply a tarrif issue. There are many barriers to markets ... indirect barriers must come down and goods must flow in - this was clearly stated to all nations.

 

Thailand, Germany, Korea, Japan ....

[ChrisY1]

I thought I read maybe 3 weeks ago that Thailand would drop all imports fees on US goods?

Obviously that didn't happen..in fact I've noticed that import fees on Amazon goods imported  to Thailand, have gone through the roof!

[HappyExpat57]

This is still in the negotiation stage, and we all know how true the word of the US has become. 🤥

[tomazbodner]

Eventually it's down to consumers. If people avoid buying US manufactured stuff, then it doesn't matter if they have or don't have market access, or whether import duties are 0 or 1000%... 

[impulse]

1 minute ago, tomazbodner said:

Eventually it's down to consumers. If people avoid buying US manufactured stuff, then it doesn't matter if they have or don't have market access, or whether import duties are 0 or 1000%... 

 

So, what you're saying is that Thailand's 200%+ tax and tariffs on US autos has no effect on whether Thais would buy a Ford F250 instead of a more expensive locally made toy truck?

 

[lordgrinz]

13 minutes ago, tomazbodner said:

Eventually it's down to consumers. If people avoid buying US manufactured stuff, then it doesn't matter if they have or don't have market access, or whether import duties are 0 or 1000%... 

 

If you haven't noticed, they love foreign goods here.

[tomazbodner]

5 minutes ago, impulse said:

 

So, what you're saying is that Thailand's 200%+ tax and tariffs on US autos has no effect on whether Thais would buy a Ford F250 instead of a more expensive locally made toy truck?

 

Not quite as generic but yes.

If I hated Ford, would never ever want to own one because in my mind it's considered a pile of [insert dirty word here], then even if it was cheaper than competitors, I still would not want to buy it.

On the flip side, if I really loved that thing, but it was double the price of a competitor, for example, but I really really wanted it, I'd still buy it anyway.

 

You have this example with luxury goods in Thailand. People still buy Rolexes etc. despite being considerably more expensive than other brands, and considerably more expensive than in other countries. In fact you can buy a new one in Hong Kong (or US) cheaper than a second hand one in Thailand. But did that stop people from buying them? It didn't. Some just found a way to smuggle them in, others coughed up whatever it cost locally. But when they wanted to have it, they made it happen.

On the other side, you could see someone trying to give something away for free and it's still not accepted as it is undesired.

 

But of course, there will be people on tight budgets who only look at the price, have no brand loyalty, don't care about quality or where it came from... Obviously those would be only swayed by price and take all the freebies they can get. But how many of those would go for a US manufactured product vs. whatever is the cheapest on the market, probably something Chinese?

[tomazbodner]

3 minutes ago, lordgrinz said:

 

If you haven't noticed, they love foreign goods here.

True. I also see that US products are now on buy 1 get 1 free more often than same or similar products from Australia or New Zealand, which sell out quicker. With prices basically same, there could be something other than price affecting decisions.

[KhaoHom]

5 minutes ago, tomazbodner said:

Not quite as generic but yes.

If I hated Ford, would never ever want to own one because in my mind it's considered a pile of [insert dirty word here], then even if it was cheaper than competitors, I still would not want to buy it.

On the flip side, if I really loved that thing, but it was double the price of a competitor, for example, but I really really wanted it, I'd still buy it anyway.

 

You have this example with luxury goods in Thailand. People still buy Rolexes etc. despite being considerably more expensive than other brands, and considerably more expensive than in other countries. In fact you can buy a new one in Hong Kong (or US) cheaper than a second hand one in Thailand. But did that stop people from buying them? It didn't. Some just found a way to smuggle them in, others coughed up whatever it cost locally. But when they wanted to have it, they made it happen.

On the other side, you could see someone trying to give something away for free and it's still not accepted as it is undesired.

 

But of course, there will be people on tight budgets who only look at the price, have no brand loyalty, don't care about quality or where it came from... Obviously those would be only swayed by price and take all the freebies they can get. But how many of those would go for a US manufactured product vs. whatever is the cheapest on the market, probably something Chinese?

 

I've missed the point entirely.

[impulse]

4 minutes ago, tomazbodner said:

17 minutes ago, impulse said:

So, what you're saying is that Thailand's 200%+ tax and tariffs on US autos has no effect on whether Thais would buy a Ford F250 instead of a more expensive locally made toy truck?

Not quite as generic but yes.

 

Generically, I think there's a Thai market for a $70,000 F250 or a $100,000 Corvette.  There is no Thai market for a $250,000 F250, or a $400,000 Corvette.  And that has naught to do with "consumer preference".

[KhaoHom]

Just now, tomazbodner said:

True. I also see that US products are now on buy 1 get 1 free more often than same or similar products from Australia or New Zealand, which sell out quicker. With prices basically same, there could be something other than price affecting decisions.

 

I'm quite disappointed by Aussie and especially kiwi beef tbh.

[KhaoHom]

9 minutes ago, lordgrinz said:

 

If you haven't noticed, they love foreign goods here.

 

Thailand doesn't really manufacturer much of anything of any substance. No value added, no innovation, no international brand outside of elephant pants.

 

It's just an assembly plant for Chinas junk, some random cheap electronics.

[FritsSikkink]

9 minutes ago, KhaoHom said:

Doesn't really matter. If the imbalance continues the tarrifs go up 🤷‍♂️

Good, pay more tax.

[FritsSikkink]

2 minutes ago, KhaoHom said:

no international brand outside of elephant pants.

Ever heard of Red Bull?

[tomazbodner]

3 minutes ago, KhaoHom said:

 

I will agree the 737 max is rubbish.

 

German products all made in China now...with German pride 🤡🤡🚀

 

Let them buy clothing, apparel, bourbon, natural gas and oil. Latter two sorely needed. Lithium batteries. Whatever...

 

I understand German auto makers make more moves to US

 

Doesn't really matter. If the imbalance continues the tarrifs go up 🤷‍♂️

And it will continue, until you start accounting for services - there isn't so much imbalance when you stop looking at physical products only, and look at the services.

What happens if other countries started slapping tariffs on services like Google, Microsoft's Office or Azure access, Amazon Web Services, Meta, Visa/MasterCard backend services, AI processing in cloud or cloud storage and transfer services, etc.?

 

But if you don't look at services, then there will always be imbalance. US produces mainly just agricultural stuff and little else, as most of the rest having already been outsourced to China due to cost cutting to lower manufacturing costs and increase corporate profits, basically driven by greed. Other local manufacturers couldn't compete on price and were forced to follow suit. But still, that accounts only for physical products. What about everything else? That's where US is one of, if not the biggest exporter of what other countries aren't taxing at all.

 

Google (OK, Alphabet) didn't become one of the biggest companies on the planet for manufacturing Pixel phones. Microsoft doesn't make nearly any money out of Windows and Office boxes sold at shops and online, or their Surface tablets and laptops. Nearly all their revenue comes from services.

 

But nobody is talking about this and only focuses on physical stuff made in factories? That's so 1950.

[G Rex]

Good play by the orange dude.

Thailand was initially slapped with a 36% tariff* (=trade deficit penalty)

Now a 19% penalty (paid by US consumers) seems like a bargain.

 

All of this to save/develop non-existent US manufacturing.

[Hamus Yaigh]

1 hour ago, KhaoHom said:

It will be interesting to see if Thailand honors the terms. It's not always simply a tarrif issue. There are many barriers to markets ... indirect barriers must come down and goods must flow in - this was clearly stated to all nations.

 

Thailand, Germany, Korea, Japan ....

Presumably you are an American as this a biased one sided US-centric view as projected by the current administration. Did you consider that?

Thailand, like many developing nations, has a different economic structure and consumer base. High-cost U.S. products, such as cars or luxury goods, may not align with local demand or purchasing power, even with lower tariffs. Forcing market access ignores these realities. Thailand has the right to protect its domestic industries (e.g., automotive manufacturing) and balance trade agreements with local economic needs. Indirect barriers, like safety standards or subsidies, often serve legitimate purposes—protecting consumers, fostering local growth, or ensuring cultural fit. Dismantling them to favor U.S. goods could destabilize Thailand’s economy without clear benefits. 

 

Thailand agreed to lower tariffs on some U.S. goods to avoid a 36% U.S. tariff on its exports, but this doesn’t mandate flooding its market with U.S. products. Both sides negotiate to balance access and protection.

 

Expecting all nations to prioritize U.S. goods overlooks diverse economic needs and the principle of equitable trade. Thailand’s compliance with the agreement will likely focus on agreed terms—possibly selective tariff cuts on U.S. auto parts or other goods—while maintaining barriers that safeguard its economy.

[John Drake]

Trump did another TACO. He's a weak man. Thailand got a better deal than Vietnam, which gave 100 percent 0 tariffs on American imports, compared to Thailand's 90 percent, which will be the biggest part of trade. Also get a lower tariff. All this in return for Thailand buying Swedish Gripens, instead of F16s. And Trump having the rug pulled out from under him with Chinese mediation of Cambodia/Thailand skirmish. All the other stuff Thailand promises will be slow walked and delayed until Trump is out of office. And those "luxury taxes" aren't going anywhere in Thailand either. Not to mention tariffs will not go into effect today, as promised. No, it will be yet another week. Delay after delay. All "art of the deal," of course. Trump is a limp leader.

[KhaoHom]

Just now, Hamus Yaigh said:

Presumably you are an American as this a biased one sided US-centric view as projected by the current administration. Did you consider that?

Thailand, like many developing nations, has a different economic structure and consumer base. High-cost U.S. products, such as cars or luxury goods, may not align with local demand or purchasing power, even with lower tariffs. Forcing market access ignores these realities. Thailand has the right to protect its domestic industries (e.g., automotive manufacturing) and balance trade agreements with local economic needs. Indirect barriers, like safety standards or subsidies, often serve legitimate purposes—protecting consumers, fostering local growth, or ensuring cultural fit. Dismantling them to favor U.S. goods could destabilize Thailand’s economy without clear benefits. 

 

Thailand agreed to lower tariffs on some U.S. goods to avoid a 36% U.S. tariff on its exports, but this doesn’t mandate flooding its market with U.S. products. Both sides negotiate to balance access and protection.

 

Expecting all nations to prioritize U.S. goods overlooks diverse economic needs and the principle of equitable trade. Thailand’s compliance with the agreement will likely focus on agreed terms—possibly selective tariff cuts on U.S. auto parts or other goods—while maintaining barriers that safeguard its economy.

 

Thailand is not a developing country. It's arguably been in decline for decades. It's a kleptocracy that guards it's markets (as the vast majority of nations). A tired, relic of the 20c...

 

Export driven economies are getting wake up call.

 

The US owes nothing to export driven, product dumping countries.

 

Protect away lol. See where that goes. 🤷‍♂️👍

[NanLaew]

42 minutes ago, impulse said:

 

So, what you're saying is that Thailand's 200%+ tax and tariffs on US autos has no effect on whether Thais would buy a Ford F250 instead of a more expensive locally made toy truck?

 

 

Thai drivers don't need any F-250's, Silverado's or ANY of those overrated hay wagons, but they will probably like the Tundra's.

 

Me? I would take a Dodge Ram 3500 Cummins Turbo Diesel crew cab dually in a heartbeat.

[John Drake]

News reports really being quiet about the transshipment issue as well. Remember Thailand began actively recruiting Chinese firms to transship from Thailand to evade US restrictions as far back as 2018. And got away with it. Guess who was president in 2018.

[Hamus Yaigh]

16 minutes ago, KhaoHom said:

Thailand is not a developing country. It's arguably been in decline for decades. It's a kleptocracy that guards it's markets (as the vast majority of nations). A tired, relic of the 20c...

 

Export driven economies are getting wake up call.

 

The US owes nothing to export driven, product dumping countries.

 

Protect away lol. See where that goes.

The U.S.-Thailand trade agreement, finalized August 1, 2025, aims for mutual benefit, not one-sided market access as you think.

Thailand’s economy, while facing challenges, remains classified as an upper-middle-income country by the World Bank, with a strong export sector (e.g., automotive, electronics). Its market protections, like the 300% effective tariff on U.S. cars, reflect strategic priorities shared by many nations, balancing domestic growth with trade obligations. The agreement likely includes selective tariff reductions to avoid U.S. tariffs on Thai exports, fostering reciprocity rather than unilateral concessions.

Global trade dynamics are shifting, but export-driven economies like Thailand adapt through negotiated agreements, not by dismantling protections entirely. Its not as simple as the US administration makes out but appeals to its voters.

[KhaoHom]

1 hour ago, tomazbodner said:

Eventually it's down to consumers. If people avoid buying US manufactured stuff, then it doesn't matter if they have or don't have market access, or whether import duties are 0 or 1000%... 

 

Right. Except there's plenty to buy. Agriculture, raw materials, energy.

 

Don't buy anything? Fine, you're locked out of US market

 

It's funny you post up this nonsense at the same time that every country on the planet is scrambling to sort out their tariff and trade issues with the United States.

 

I can't think of anything that US needs from one particular county outside of rare earth minerals - can you?

[Patong2021]

1 hour ago, impulse said:

 

So, what you're saying is that Thailand's 200%+ tax and tariffs on US autos has no effect on whether Thais would buy a Ford F250 instead of a more expensive locally made toy truck?

 

 

There isn't enough interest in the model to support its importation. The Ranger the Everest SUV are manufactured at the Rayong facility. The Ford Ranger pickup offer 7 models ranging from the basic engine to a turbo charged V6, from a basic bed to an XL bed. This is what the local market can support. 

[tomazbodner]

13 minutes ago, KhaoHom said:

 

Right. Except there's plenty to buy. Agriculture, raw materials, energy.

 

Don't buy anything? Fine, you're locked out of US market

 

It's funny you post up this nonsense at the same time that every country on the planet is scrambling to sort out their tariff and trade issues with the United States.

 

I can't think of anything that US needs from one particular county outside of rare earth minerals - can you?

Let's stop all the ships headed to US and find out? I bet it'll look like this: 

[KhaoHom]

1 hour ago, ChrisY1 said:

I thought I read maybe 3 weeks ago that Thailand would drop all imports fees on US goods?

Obviously that didn't happen..in fact I've noticed that import fees on Amazon goods imported  to Thailand, have gone through the roof!

 

Perhaps the product wasn't actually made in USA?

 

Last I'd read Thailand agreed to open market to all US goods although I'm uncertain whether that includes autos.

 

It was stated that even doing this won't come close to resolving trade imbalance even with Thai goods, but the real issue is repackaging goods from China. That amounts to 24B USD sent to US alone

[KhaoHom]

Just now, tomazbodner said:

Let's stop all the ships headed to US and find out.

 

I'll take that as zero.

[KhaoHom]

1 hour ago, FritsSikkink said:

Ever heard of Red Bull?

 

I'd forgotten. Score 1. Huge + financially, huge negative socially.

 

Have a few more?

[Patong2021]

2 minutes ago, KhaoHom said:

I can't think of anything that US needs from one particular county outside of rare earth minerals - can you?

 

Really? Then why is the US importing 4 million barrels of oil a day, 50 Terr Watts/h per annum, from canada? Where does the USA mine the nickel, cobalt, tellurium, niobium, uranium, potash, indium, tungsten, magnesium  and potash to cover its domestic needs?

Trump says he doesn't need Canadian lumber, yet the USA doesn't have enough sawmills or loggers to replace the canadian lumber imports. The USA  doesn't have enough aluminum to cover its domestic needs, nor can it produce enough because Aluminum smelting requires lots of  energy and it just isn't cost effective to produce it in  the USA. Where would all those morbidly obese  Americans source their XXXXL clothing if not from Bangladesh, Vietnam or Cambodia?  Who's manufacturing the  low cost consumer  items the USA demands? It's not as if the USA has anyone making it. All those EU sourced medications the USA wants to surcharge  cannot be made in the USA because the local demand cannot generate enough revenue to justify the manufacturing investment.

The USA expects to sell its products in other countries, without accepting imports from those countries. The USA runs  large surpluses in services and expects that other countries should accept that unfair construct.