Thailand to Submit Trade Proposal to U.S. Amid Tariff Negotiations
Urgent discussions in advance of potential tariffs set to impact Thai imports.
Thailand is set to present its initial trade proposal to the United States on Friday, as the country seeks to navigate increasing trade tensions ahead of a looming deadline.
Vuttikrai Leewiraphan, the permanent secretary of the Ministry of Commerce and head of the negotiating team, confirmed that discussions have taken place via video conference with officials from the U.S. Trade Representative's office.
The U.S. has outlined five key topics for negotiation aimed at promoting balanced trade relations: tariff measures and quotas, non-tariff barriers, digital trade management, rules of origin, and economic and national security concerns.
Vuttikrai stated that the USTR has requested Thailand to address these areas in its proposal by the upcoming Friday deadline.
This timeline is critical as it allows less than three weeks for both nations to finalize an agreement before a potential increase in tariffs.
The U.S. administration has indicated it may impose a 36% tariff on imports from Thailand should negotiations fail before a 90-day pause ends on July 9, which currently limits tariffs to a baseline of 10%.
In prior conversations, Vuttikrai expressed optimism regarding the discussions, sharing that Thailand previously submitted a framework suggesting reductions in import tariffs on selected items, included plans for purchasing Boeing aircraft, investments related to defense, and proposals to minimize non-tariff barriers.
He highlighted the intention for this proposal to be robust enough to prompt further consideration and detailed negotiations.
Despite the tight timeframe for concluding talks, Vuttikrai noted the possibility of an extension for negotiations if a final agreement is not reached by the deadline, indicating expectations that Thailand could maintain the maximum tariff rate at 10%.
As part of their trade dynamics, the Thai Ministry of Commerce reported a significant rise in Thai exports in May, which surged by 18.4% year-on-year, reaching a record $31 billion.
This increase was largely attributed to a concerted effort to ship goods to the U.S. before the potential higher tariffs take effect, with shipments to the U.S. seeing a 35% rise compared to the previous year.
For the first five months of 2025, Thailand recorded exports of $138.2 billion, marking a 14.9% increase, while imports rose 11.3% to $139.3 billion, resulting in a trade deficit of $1.12 billion.
Poj Aramwattananont, chairman of the Thai Chamber of Commerce, mentioned that a decline in the value of exports for June is anticipated.
He emphasized that the future of Thailand's export growth for the year hinges on the developments regarding U.S. tariffs following the expiration of the 90-day suspension.
Vuttikrai Leewiraphan, the permanent secretary of the Ministry of Commerce and head of the negotiating team, confirmed that discussions have taken place via video conference with officials from the U.S. Trade Representative's office.
The U.S. has outlined five key topics for negotiation aimed at promoting balanced trade relations: tariff measures and quotas, non-tariff barriers, digital trade management, rules of origin, and economic and national security concerns.
Vuttikrai stated that the USTR has requested Thailand to address these areas in its proposal by the upcoming Friday deadline.
This timeline is critical as it allows less than three weeks for both nations to finalize an agreement before a potential increase in tariffs.
The U.S. administration has indicated it may impose a 36% tariff on imports from Thailand should negotiations fail before a 90-day pause ends on July 9, which currently limits tariffs to a baseline of 10%.
In prior conversations, Vuttikrai expressed optimism regarding the discussions, sharing that Thailand previously submitted a framework suggesting reductions in import tariffs on selected items, included plans for purchasing Boeing aircraft, investments related to defense, and proposals to minimize non-tariff barriers.
He highlighted the intention for this proposal to be robust enough to prompt further consideration and detailed negotiations.
Despite the tight timeframe for concluding talks, Vuttikrai noted the possibility of an extension for negotiations if a final agreement is not reached by the deadline, indicating expectations that Thailand could maintain the maximum tariff rate at 10%.
As part of their trade dynamics, the Thai Ministry of Commerce reported a significant rise in Thai exports in May, which surged by 18.4% year-on-year, reaching a record $31 billion.
This increase was largely attributed to a concerted effort to ship goods to the U.S. before the potential higher tariffs take effect, with shipments to the U.S. seeing a 35% rise compared to the previous year.
For the first five months of 2025, Thailand recorded exports of $138.2 billion, marking a 14.9% increase, while imports rose 11.3% to $139.3 billion, resulting in a trade deficit of $1.12 billion.
Poj Aramwattananont, chairman of the Thai Chamber of Commerce, mentioned that a decline in the value of exports for June is anticipated.
He emphasized that the future of Thailand's export growth for the year hinges on the developments regarding U.S. tariffs following the expiration of the 90-day suspension.
