Thailand’s government has announced a 200-billion-baht soft loan program to support small and medium-sized enterprises (SMEs) affected by a looming 36% US tariff on Thai exports. The measure comes as Bangkok faces increasing trade pressure from Washington ahead of a tariff deadline set for 1 August 2025.
Finance Minister Pichai Chunhavajira, who is leading negotiations with US counterparts, acknowledged that the trade talks are not producing mutually beneficial outcomes. “This is not a win-win situation, but a zero-sum game,” he said, describing the US as having the upper hand in efforts to reduce its trade deficit with Thailand.
As part of the negotiations, Thailand is expected to open its market further to US imports. The Finance Ministry has indicated that tariffs on a wide range of US goods—including agricultural products, automobiles, and energy—may be reduced or eliminated. These sectors reportedly represent around 90% of the total value of US exports to Thailand.
Pichai emphasized the need for political stability to ensure continuity in the tariff talks, which are scheduled to conclude before the US-imposed deadline. The final proposal will also need to be submitted to Thailand’s parliament for review.
In addition to offering financial support to affected SMEs, the government plans to tighten controls on transshipment practices to prevent Thai territory from being used to circumvent US trade restrictions.
The impact of the new trade policy is already being felt in the private sector. According to Samphan Silpanart, president of the Electronics and Computer Employers Association, a major semiconductor firm employing more than 3,000 researchers—half of whom are Thai—has announced an indefinite suspension of its investment plans pending the outcome of the tariff negotiations.
Meanwhile, Thanakorn Kasetsuwan, president of the Thai National Shippers Council, urged the government to reconsider the current minimum wage policy, arguing that it does not reflect the realities of the economic slowdown and inflationary pressures facing Thai businesses.
