Thailand is offering substantial trade concessions to the United States in a bid to avoid a 36 percent tariff on its exports, part of a broader tariff policy announced by President Donald Trump that targets over a dozen countries.
The new tariffs are set to take effect on August 1, following a 90-day pause implemented through executive order.
Thai Finance Minister Pichai Chunhavajira said Bangkok is proposing to open its markets more broadly to American agricultural and industrial goods, while also pledging to increase purchases of US energy and aircraft. The goal is to cut Thailand’s $46 billion trade surplus with the US by 70 percent within five years, with full trade balance projected in seven to eight years.
The revised offer is expected to be submitted before July 10, the final day of the current tariff freeze. If accepted, Thailand would begin lifting import and non-tariff restrictions on many US products immediately, with a phased approach for other categories.
The US tariffs vary by country: 25 percent on imports from Japan, South Korea, and Malaysia; 30 percent for South Africa; and up to 40 percent for Laos and Myanmar. Thailand’s proposed 36 percent tariff remains one of the highest among the targeted nations.
In recent days, Thailand has intensified talks with US officials. High-level negotiations were held between Minister Pichai, US Trade Representative Jamieson Greer, and Deputy Treasury Secretary Michael Faulkender, the first of such meetings at the ministerial level since the tariffs were first announced in April.
Among the trade commitments under consideration are increased imports of US liquefied natural gas and ethane, with Thai firms SCG Chemicals and PTT Global Chemical involved in procurement plans. PTT is also exploring a 20-year agreement to buy LNG from an Alaska project. Thai Airways has signaled interest in acquiring up to 80 Boeing aircraft.
The Trump administration’s announcement on July 7 was confirmed by White House Press Secretary Karoline Leavitt, who presented official communications sent to the governments of affected nations. The identical letters were also posted on President Trump’s Truth Social account. Regional neighbors like Vietnam have already reached partial deals, with Thailand now aiming for a tariff rate between 10 and 20 percent.
Analysts view the outcome of the negotiations as critical for Thailand’s export-dependent economy, which is already facing pressure from sluggish domestic demand and high household debt. The uncertainty also comes amid political instability, including the court-ordered suspension of Prime Minister Paetongtarn Shinawatra.
