Thailand will not agree to eliminate all tariffs on US goods during ongoing trade negotiations, as such a move could adversely affect domestic industries and strategic sectors, according to Deputy Finance Minister Paopoom Rojanasakul.
Ahead of a scheduled meeting between the “Team Thailand” delegation, led by Finance Minister Pichai Chunhavajira, and the Office of the United States Trade Representative (USTR) on Thursday, Mr. Paopoom highlighted the importance of balancing the protection of exporters with the needs of local producers, including farmers and small businesses.
“The goal in negotiations isn’t about achieving the lowest tariff, but about maintaining a balanced outcome,” he said.
He noted that current reciprocal tariffs on Thai exports to the US average around 36%, and discussions are ongoing to obtain more favorable terms. However, he warned that any concessions to lower US tariffs would likely come with expectations for increased market access for US goods—risks that could harm Thailand’s local industries.
“Lowering tariffs isn’t a simple matter,” Mr. Paopoom explained. “We must consider the impact on our domestic sectors. Nothing is free; if we want US tariffs reduced, we need to offer market access in return.”
The deputy finance minister emphasized that Thailand cannot adopt a blanket zero-tariff approach similar to Vietnam’s, which would require full market access for US products. “We need to weigh the potential benefits against the risks of harm to our economy.”
While recognizing the importance of exports to Thailand’s GDP, he stressed that the government must also safeguard the interests of farmers, SMEs, and domestic livestock producers. “Thailand isn’t solely an export-driven economy; we have to consider all segments of society.”
He clarified that strategic products—those vital to national interests—should be excluded from zero-tariff commitments, as overexposing domestic markets to foreign goods could disrupt supply chains and undermine local competitiveness.
Addressing comparisons with Vietnam, Mr. Paopoom explained that Vietnam’s US trade policy involves two tariff rates: 20% for goods produced with domestic or regional inputs that meet Regional Value Content (RVC) requirements, and 40% for those that don’t. Due to Vietnam’s less developed supply chain, a larger share of Vietnamese exports is likely subject to the higher tariff.
Commerce Minister Jatuporn Buruspat confirmed that Thailand has proposed reducing import tariffs on tens of thousands of US products to zero, and additional proposals are under consideration.
As negotiations progress, the Commerce Ministry has instructed relevant agencies to prepare contingency strategies to counter potential retaliatory tariffs from the US. Minister Jatuporn stated that Thailand is planning for two scenarios: one where Thai exports face a 36% tariff and another where tariffs are reduced to 20%, matching Vietnam’s level.
Chanintr Chalisarapong, Vice Chairman of the Thai Chamber of Commerce, told Bloomberg News that Thailand aims to eliminate tariffs on 90% of US goods, up from the previous goal of 60%. The proposed list, covering 10,000 US products, will be presented to Washington and could slash Thailand’s $46 billion trade surplus by up to 70% within three years.
He added that final tariffs are expected to fall to around 18–20%, reflecting a more ambitious approach than previous offers and surpassing commitments made by Indonesia and Vietnam, thanks to Thailand’s capacity for processing and re-exporting US goods.