Thailand Finalizes Strategy to Address US 36% Tariff Threat

Thailand is actively negotiating with the United States to address the imposition of a 36% retaliatory tariff on its exports, set to begin August 1, 2025, under the US Reciprocal Tariff policy. Former Prime Minister Thaksin Shinawatra has taken a leading role in coordinating Thailand's response, participating in high-level meetings with economic advisers, ministers, and party officials to finalize trade proposals and mitigation strategies that prioritize the welfare of Thai citizens, especially farmers and SMEs. Thailand submitted a revised trade proposal on July 6, 2025, aiming to reduce the trade surplus with the US by 70% by 2030 and achieve full trade balance by 2031–2032, with the US demanding broad concessions similar to those obtained from Vietnam, including tariff reductions, removal of non-tariff barriers, and sector liberalizations. The Thai government is preparing support measures such as budget allocations, relief funding, and soft loans to help affected industries adapt to the market changes and increased pressure to import American goods. Discussions have also focused on sensitive issues like trans-shipment controls, which could impact Thai exporters significantly. A high-level meeting on July 11, 2025, led by Deputy Prime Minister and Finance Minister Pichai Chunhavajira, is expected to consolidate business inputs and finalize Thailand’s negotiating stance before the July 31 deadline.