Thailand's Prime Minister, Paetongtarn Shinawatra, confirmed on Thursday that the country will engage in negotiations with the United States regarding newly imposed tariffs.

This announcement came shortly after US President Donald Trump declared extensive tariffs on imports from various nations, including Thailand.

Prime Minister Shinawatra emphasized the necessity of collaboration, stating, "We won’t let it get to where GDP will miss the target.

We have a strong plan." She indicated that preparations are in place, including dispatching the permanent secretary to engage in discussions with US counterparts.

Deputy Finance Minister Julapun Amornvivat conveyed that the Thai government anticipated tariffs but noted the anticipated 36% rate was higher than expected.

He remarked, “We have to negotiate with understanding, not aggressive talk,” highlighting the need to address specific products highlighted by the US as unfair.

According to the Office of the US Trade Representative, Thailand recorded a trade surplus with the US amounting to $45 billion last year.

In anticipation of the tariff announcement, Thailand adopted a wait-and-see strategy and has pledged to increase imports of energy and food products to help reduce the trade surplus.

The electronics, machinery, and agricultural sectors constitute the majority of Thailand's exports to the US, making it the country's largest export market.

However, Thai Chamber of Commerce chairman Poj Aramwattananont described the 36% tariff as unexpected and urged the government to prioritize swift negotiations.

He acknowledged the broader impact on both Thailand and the US, asserting, “Don’t panic as other countries are also facing higher tariffs.”

The imposition of reciprocal tariffs could potentially result in a contraction of Thailand's gross domestic product (GDP) by as much as 1.2 percentage points from a projected growth rate of 2.5%.

Financial analysts from InnovestX Securities indicated that a proposed interest rate cut by the Bank of Thailand would have limited effect on the economy amid these developments.

Thailand has been identified as part of the “Dirty 15” list of nations potentially affected by the Trump administration’s tariffs, where the average tariff on Thai imports into the US stands at 2%, while Thailand enforces an 8% average tariff on American goods.

In the wake of these developments, Southeast Asian currencies and stock markets experienced declines.

The Thai baht weakened by as much as 0.8% against the US dollar, while the Malaysian ringgit and South Korean won also saw drops.

Notable declines included Singapore’s main stock index, which fell by 1.3% before recovering some losses, and Malaysia’s stock market, which declined by 0.7%.

This region of Southeast Asia has been classified as among the poorest performing equity markets globally this year.

Economic analysts from ING Bank remarked on the significant impact on Asian emerging markets due to the tariff announcement, suggesting a prevalent global risk-off environment that could correlate with lower market rates.

The newly announced tariffs particularly affected Southeast Asia, with Vietnam facing a 46% increase, Thailand a 36% increase, and Indonesia a 32% increase.

China, the region's largest trading partner, faced a cumulative tariff of 54%.

Investors are currently monitoring potential retaliatory actions from affected nations, which could exacerbate ongoing global trade tensions.