On Monday, U.S. President Donald Trump sent letters to over dozens of nations regarding new tariff rates that will be imposed on August 1, with Thailand facing a 36% tariff on all goods exported to the U.S. Mr. Worapak Thanyawong, Advisor to the Minister of Finance, stated that there is no need for major concern as Thailand is still in the middle of negotiation and still facing a 10% import tariff.
He highlighted that Thailand is still aiming for long term benefit and has not made disadvantages concessions like some other countries that follow the U.S.’ request and open access to their markets. On July 4, Thailand’s delegation team negotiated directly with the U.S. Trade Representative’s office, making progress and learning which issues that the U.S. wants to adjust.
On July 6, Thailand’s delegates sent a new proposal to the U.S. but the delivery seemed to arrive after Trump sent out his new tariff rates letters. Mr. Worapak speculated that the U.S. will take time to review the new proposal before officially announcing Thailand’s finalized tariff rate. He is confident that the U.S. will not impose the 36% tariff on Thailand after reviewing the latest proposal and expected that the new tariff rate would be less or close to Vietnam’s.
Mr. Kriengkrai Thiennukul, Chairman of the Federation of Thai Industries (FTI), stated that the U.S.’ decision would affect Thailand’s export industry, especially the sectors that has the U.S. as main trade partner, such as processed foods, agriculture products, vehicles and parts, electrical appliances and devices, fabrics, gems, steels, and aluminums. The impact value to the export industry is expected to reach about THB 800 – 900 billion.
Mr. Kriengkrai also highlighted that the second proposal is different from the first as it offers the U.S. a permission to export thousand categories of its goods to Thailand without facing tariffs. Although the U.S. has not responded yet, Mr. Kriengkrai speculated that once the proposal was reviewed, there will be a positive development.
As for now, the situation remains uncertain. Therefore, FTI has called for an emergency meeting with 47 industry groups and 11 clusters to determine the impact on each group and form appropriate support measures. Afterward, the Joint Standing Committee on Commerce, Industry and Banking will hold a meeting with the government sector and related agencies to form defensive measures
