Economy Thailand-US to Resume Trade Talks Amid Tariff Concerns

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Photo courtesy of Thai PBS

 

In an ongoing effort to strengthen trade ties, Thailand and the United States are set to hold a second round of discussions focused on non-tariff issues like regional value content (RVC). Scheduled for the end of this month or early September, the talks aim to reach an Agreement on Reciprocal Tariffs (ART), according to Deputy Commerce Minister Chantawit Tantasith.

 

The central issue revolves around whether the US will address the RVC with each nation individually or collectively. This decision carries considerable implications for Thai exports, particularly manufactured goods, while largely sparing farm and processed agricultural products, thanks to their utilization of locally-sourced materials.

 

Chantawit emphasised that any finalized ART must be approved by the Thai parliament, ensuring transparency and public participation in the decision-making process.

 

Complicating matters, a new 19% tariff on Thai imports to the US has been implemented as of Thursday. Meanwhile, a heftier 40% tariff on transshipped goods hasn’t yet come into force, pending further regulatory clarification from the US authorities. This leaves many Thai exporters in a state of uncertainty.

 

In contrast, US imports into Thailand enjoy more favourable conditions. More than 10,000 items are already exempt from taxation, with about 60% benefitting from existing free trade agreements with the US and other nations.

 

Even with around 2,000 other products not covered, Minister Chantawit reassured that their impact on the Thai market would be minimal, as they are unlikely to see significant import demand.

 

As the dialogue between these two nations continues, many eyes will be on how these negotiations progress and the potential economic impacts on both sides. These talks mark a crucial moment for enhancing trade relations, with both countries standing to gain from a mutually beneficial agreement.

 

  Adapted by ASEAN Now from Thai PBS 2025-08-08