Thailand Prepares Compensation and Support Measures Following US Tariff Agreement
Government outlines loans, tax relief, and sector-specific support as reciprocal tariffs with the United States drop from thirty-six to nineteen percent under new trade terms.
Thailand’s government has announced a package of financial and regulatory measures to help businesses adjust to changes in trade with the United States following a new tariff agreement.
Under the deal, reciprocal tariffs will be reduced from thirty-six to nineteen percent from 7 August 2025, while Thailand will open its market to more than ten thousand US products at zero percent tariff, including agricultural goods, and increase quotas for sensitive agricultural imports.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira said relevant agencies have been tasked with finalising sector-specific measures to offset the impact of the tariff changes.
Industries identified as significantly affected include electronics, processed foods, electrical appliances, jewellery, and gems.
According to Pichai, some exporters may absorb part of the costs, while others may pass them on to US buyers or consumers.
The government will introduce soft loan programmes through state-owned financial institutions, with an initial two hundred billion baht allocation.
Additional soft loans may be arranged with commercial banks.
The Ministry of Finance is considering using the remaining twenty-four billion baht from the 2025 economic stimulus budget to repay debts to state banks, potentially increasing their lending capacity by up to one hundred billion baht.
Tax measures under review include corporate income tax reductions, tax credits, and other adjustments to support businesses during the transition to the new tariff rate.
The Bank of Thailand has advised continued monitoring of stimulus funds to ensure transparency and public accountability.
Measures being considered to safeguard domestic industries include strict enforcement to prevent import surges, thorough product inspections, and trade dispute resolution.
The Cabinet-approved ten-billion-baht Competitiveness Enhancement Fund may be expanded to assist companies not currently eligible for Board of Investment incentives.
The government is also preparing targeted support for industries it seeks to keep competitive in global markets.
Deputy Secretary-General to the Prime Minister Pongsarun Assawachaisophon stated that business operators are being consulted to tailor support for each affected sector.
Jewellery and gem exporters have proposed that importers cover forty percent of additional US tariffs, the government provide support for another forty percent, and the remaining twenty percent be absorbed by consumers or reflected in importer pricing.
They are also requesting a one to two-year adjustment period with tax relief instead of loans.
Ongoing negotiations with the United States cover over ten thousand items under a planned Joint Trade Agreement.
For certain agricultural products, such as corn, the government will prioritise purchasing all domestic output before allowing imports, with a fixed market price to ensure full domestic procurement.
Under the deal, reciprocal tariffs will be reduced from thirty-six to nineteen percent from 7 August 2025, while Thailand will open its market to more than ten thousand US products at zero percent tariff, including agricultural goods, and increase quotas for sensitive agricultural imports.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira said relevant agencies have been tasked with finalising sector-specific measures to offset the impact of the tariff changes.
Industries identified as significantly affected include electronics, processed foods, electrical appliances, jewellery, and gems.
According to Pichai, some exporters may absorb part of the costs, while others may pass them on to US buyers or consumers.
The government will introduce soft loan programmes through state-owned financial institutions, with an initial two hundred billion baht allocation.
Additional soft loans may be arranged with commercial banks.
The Ministry of Finance is considering using the remaining twenty-four billion baht from the 2025 economic stimulus budget to repay debts to state banks, potentially increasing their lending capacity by up to one hundred billion baht.
Tax measures under review include corporate income tax reductions, tax credits, and other adjustments to support businesses during the transition to the new tariff rate.
The Bank of Thailand has advised continued monitoring of stimulus funds to ensure transparency and public accountability.
Measures being considered to safeguard domestic industries include strict enforcement to prevent import surges, thorough product inspections, and trade dispute resolution.
The Cabinet-approved ten-billion-baht Competitiveness Enhancement Fund may be expanded to assist companies not currently eligible for Board of Investment incentives.
The government is also preparing targeted support for industries it seeks to keep competitive in global markets.
Deputy Secretary-General to the Prime Minister Pongsarun Assawachaisophon stated that business operators are being consulted to tailor support for each affected sector.
Jewellery and gem exporters have proposed that importers cover forty percent of additional US tariffs, the government provide support for another forty percent, and the remaining twenty percent be absorbed by consumers or reflected in importer pricing.
They are also requesting a one to two-year adjustment period with tax relief instead of loans.
Ongoing negotiations with the United States cover over ten thousand items under a planned Joint Trade Agreement.
For certain agricultural products, such as corn, the government will prioritise purchasing all domestic output before allowing imports, with a fixed market price to ensure full domestic procurement.
