Thailand is nearing a deal with the United States to reduce a looming 36% import tariff on its exports, with an expected announcement before the tariff takes effect on August 1, according to Finance Minister Pichai Chunhavajira. He anticipates that trade negotiations will conclude within the next few days.
Pichai stated that Thailand will soon submit additional clarifications and finalize the details of its proposal to U.S. trade officials. The country has already provided Washington with nearly all the information requested, and the agreement is expected to be finalized shortly.
“We’ve completed more than 90% of the negotiations. Today or tomorrow marks the final stretch, with only a few remaining issues,” said Pichai, who is leading Thailand’s trade negotiation team. “Some requests for explanations came from their side, and I am reviewing those to ensure everything is truly complete.”
He expects Thailand to secure a new tariff rate aligned with neighboring countries. President Donald Trump previously announced similar deals, applying a 20% tariff on Vietnamese goods and a 19% tariff on Indonesian exports.
In a bid to secure a more favorable outcome, Bangkok has offered to boost imports of US goods with strong domestic demand, including agricultural products, liquefied natural gas, and Boeing aircraft, aiming to reduce a trade surplus that reached $46 billion last year. Additionally, Thailand has pledged increased investments in the US, including in the Trump-supported Alaska gas project.
The Thai government has expanded the list of US products that will be subject to zero tariffs to include 90% of all items—up from over 60% previously, according to the Thai Chamber of Commerce, which advises Pichai. This move could potentially cut Thailand’s trade surplus by 70% over three years and achieve trade balance within five years.
When asked if the US had made new demands following last week’s ministerial negotiations, Pichai noted: “They’re not exactly asking for more, but they do have a list of expectations—how policies should look and how certain issues should be handled.” He added that Thailand is currently reviewing whether it can meet these expectations.
Thailand’s economy is already under pressure due to the country’s high household debt and weak domestic consumption. A favorable trade agreement could help ease investor concerns amid ongoing political uncertainties, including the recent suspension of Prime Minister Paetongtarn Shinawatra over allegations related to a border dispute with Cambodia.
Thailand’s exports increased by approximately 15% in the first five months of the year, largely driven by a front-loading strategy during the 90-day window to facilitate tariff negotiations.