The Thai stock market is expected to open higher following news of a breakthrough in trade talks between Thailand and the United States, easing investor concerns over potential tariff escalations.
After several rounds of negotiations with the Trump Administration, Washington announced it had reached an agreement with Thailand to impose a 19% import tariff on Thai products shipped to the U.S. The rate is significantly lower than the 36% reciprocal tariff initially proposed by President Donald Trump in early April and will replace a threatened baseline tariff of up to 20% that was set to take effect after the August 1 deadline.
While the White House statement did not disclose specific details of the deal, Thailand’s negotiation team is expected to release further information later today. Analysts note that the clarity and reduced tariff rate will likely boost market sentiment, as fears of a full-blown trade dispute have eased.
The new tariff arrangement aligns Thailand with Malaysia and Cambodia, which also secured 19% rates in their respective negotiations with the U.S. The outcome is seen as a win for Thailand’s export sector, particularly for industries that rely heavily on the U.S. market, as it avoids the steep tariffs that could have weighed heavily on trade volumes and corporate earnings.
Strategists believe the agreement could trigger renewed foreign fund inflows into Thai equities, especially in sectors poised to benefit from trade stability, compared to 20% tariff for Vietnam. The Stock Exchange of Thailand (SET) Index could see gains in the short term as investors react to the reduced trade risks and improved outlook for Thai exporters.
With further details expected later today, market participants will closely monitor any sector-specific provisions in the deal that could influence earnings forecasts for key listed companies.
