Thailand ready to negotiate with US after being imposed on 36 per cent tariff

Thailand ready to negotiate with US after being imposed on 36 per cent tariff

03/04/2025

Paetongtarn Shinawatra hopes to hold constructive dialogue with the US at the earliest opportunity to achieve a fair trade balance. -Reuters


BANGKOK: The Thai government is ready to negotiate with the United States (US) after President Donald Trump announced the implementation of a 36 percent reciprocal tariff on Thai exports to the US.

Its Prime Minister Paetongtarn Shinawatra said in a statement today that he hoped to hold constructive dialogue with the US at the earliest opportunity to achieve a fair trade balance and minimise disruption to both economies.

She made the announcement following the implementation of a minimum tariff of 10 per cent on imports from all countries through the Trade and Reciprocal Tariff policy by the Trump administration. For countries that have a trade surplus against the US and that the US sees as having unfair trade advantages such as high tariffs, non-tariff barriers and various fees, the country-specific reciprocal tariff will be charged half of the tariff rate imposed on US exports in that market.

"For Thailand, this reciprocal tariff is set at 36 percent, effective April 9, 2025," the statement said.

Paetongtarn said the tariff hike would have a far-reaching impact around the world as it would impact all trading partners, especially US consumers who may struggle to absorb the rapid price increases.

However, she said a US Trade Policy Task Force set up on Jan 6 this year has been working closely with the public and private sectors over the past three months to monitor developments and prepare a substantive set of recommendations.

She said the proposal aims to encourage the US to enter into negotiations with Thailand while reducing the impact on Thai farmers, consumers and businesses.

"At the same time, this situation may also provide an opportunity for Thailand to restructure production, reduce costs and increase long-term competitiveness in certain industries," she said.

Paetongtarn stressed that Thailand remains committed to fostering a stable and balanced trade relationship with the US while reaffirming its position as a reliable ally and economic partner to the US.