Thailand’s Deputy Finance Minister Julapun Amornvivat revealed that the country is currently in negotiations with the United States over trade tariffs, cautioning that a resolution may not come quickly and that talks are unlikely to conclude fully in the near term.
He anticipates further rounds of discussion will be necessary and expects the U.S. to understand the complexities, while also hoping for a postponement of tariff implementation. The final tariff rate remains undetermined as negotiations continue, but Julapun expressed optimism for a favorable outcome.
On July 3, the Thai delegation, led by Deputy Prime Minister and Finance Minister Pichai Chunhavajira, held a key meeting with the United States Trade Representative (USTR) to negotiate a reduction in U.S. tariffs on Thai imports, which had been set at 36%. Thailand has already submitted its proposal and received positive initial signals from U.S. officials. However, as of now, there is no official announcement regarding the latest outcome from these negotiations.
Julapun also stressed that the government does not view the worst-case scenario—where Thai imports would be hit again with the full 36% tariff—as likely. He highlighted ongoing, multi-level talks with U.S. officials and noted steady progress.
Thailand’s negotiating team is well-prepared, with input from the finance, commerce, and agriculture ministries as well as the private sector. They have a clear grasp of U.S. requirements and are working intensively to adjust strategy as needed, ensuring readiness for any outcomes.
While acknowledging that Thailand cannot expect to return to the pre-tariff rate of 10%, Julapun hopes for a favorable tier, noting, however, that Vietnam’s recent experience with U.S. negotiations was challenging. The deputy minister emphasized the longstanding and unique relationship between Thailand and the U.S., giving hope but also recognizing the need to strike a new balance.
He remains confident that Thailand’s bargaining power is no less than Vietnam’s, and the negotiating team has prepared extensively to minimize impacts, especially on vulnerable groups.
Additionally, Julapun stated that the government has allocated approximately 10 billion baht from the 115-billion-baht budget to stimulate the economy. These funds are intended to support and cushion the private sector against the potential fallout from the trade dispute and U.S. tariffs, with the goal of sustaining employment and production.
