Thailand is poised to revamp its trade proposal in a last-minute effort to stave off stiff U.S. tariffs, after previous concessions failed to fully satisfy the demands of Washington.
Following high-level negotiations in the United States, Finance Minister Pichai Chunhavajira acknowledged via Bloomberg News that Thailand’s initial offer—to increase market access for American agricultural and industrial goods and ramp up purchases of energy and Boeing aircraft—fell short of securing a breakthrough.
The talks come as the Trump administration is planning to weigh a 36% export levy on Thai goods, a move that could severely undermine the country’s export-driven economy.
Thailand’s original pledge targeted a rapid reduction of its $46 billion trade surplus with the U.S., aiming to slash it by 70% within five years and achieve balance within eight. The proposal included immediate tariff and barrier waivers on a broad range of products, with gradual phase-outs for others, along with significant long-term commitments to purchase U.S. ethane, LNG, and up to 80 Boeing jets. Despite these gestures, U.S. officials remain unconvinced.
With the 90-day grace period set to expire July 9, Thailand is racing to deliver a new package of incentives to avoid crippling tariffs. Finance Minister Pichai told Bloomberg that what Bangkok offers Washington is to achieve a mutual benefit. He acknowledged the urgency—echoing concerns that further negotiations are needed to secure a more favorable outcome.
If an agreement remains elusive, economists warn that the resulting tariffs could slash nearly one percentage point from the nation’s GDP growth, dealing a blow to one of Southeast Asia’s most export-dependent economies. Neighboring Vietnam recently negotiated a deal that capped some tariffs at 20%, adding pressure on Thailand to secure similar or better terms.
The upcoming proposal is expected to include even more expansive commitments to U.S. imports and deeper reductions in trade barriers as Thailand seeks to bring their offer in line with Washington’s expectations.
As the clock ticks, all eyes remain on the negotiation team from Thailand to craft a proposal that will keep its access to the critical U.S. market intact, as both economic and political stakes continue to rise.
The Thai finance minister last Friday reiterated Thailand’s commitment to securing a stable, practical, and sustainable agreement that delivers mutual benefits. Meanwhile, the U.S. also applauded Thailand’s efforts on negotiation approach.
