Thailand’s Deputy Prime Minister and Finance Minister expressed confidence on Tuesday that the country can secure an agreement with the United States to reduce a proposed 36 percent tariff on Thai exports before the August 1 deadline. The official confirmed that the government has prepared contingency plans should negotiations fall through.
The new trade measures, announced by US President Donald Trump on July 7, call for a blanket 36 percent tariff on all Thai products entering the US, separate from existing sector-specific tariffs. Trump made the announcement through letters published on social media, warning that any retaliatory action from affected countries could trigger even higher US tariffs.
The proposed tariff is intended to address the trade deficit between the US and Thailand. Trump also offered a path to exemption, indicating that Thai firms choosing to relocate production to the US could avoid the new tariff and benefit from expedited approval processes.
Thailand’s Deputy Prime Minister outlined the government’s strategy, noting that the tariff rate could be adjusted by product category. He explained that the US has identified different tariff categories for countries: some will maintain existing rates, others with higher rates may see reductions, while countries such as South Korea and Japan are under review for potential reclassification.
He emphasized that Thailand’s aim is to ensure fair competition for its exports, and that many items already fall under existing Free Trade Agreements at zero percent tariffs. Efforts are underway to align Thailand’s trade position with that of key competitors.
Addressing concerns about the impact of Thailand’s observer role in the BRICS grouping, he stressed that the country must engage with all international partners and that this status should not negatively affect US relations.
While acknowledging that the US will dictate the pace of negotiations, the Deputy Prime Minister underlined Thailand’s commitment to ongoing dialogue until the August 1 deadline. Meanwhile, he said the government has prepared support measures for businesses potentially affected by the tariffs and is ready to draw on various funding sources beyond standard economic stimulus packages.
He added that market volatility linked to the tariff announcement reflects broader concerns shared by other US trade partners, and emphasized the importance of maintaining investor confidence through transparent communication.
President Trump announced the new tariffs at the White House earlier this month. Thai officials, including trade and finance representatives, are continuing to monitor the situation and engage in talks aimed at reaching a resolution.
