Thailand Nears US Trade Deal, Tariffs Expected Below 36%

Thailand is nearing the conclusion of trade negotiations with the United States, aiming to finalize a deal before the August 1 deadline with tariffs expected to be significantly lower than the initially threatened 36%, aligning more closely with regional peers like Vietnam and Indonesia. The U.S. remains Thailand’s largest export market, accounting for 18.3% of exports valued at nearly $55 billion, while the U.S. holds a $45.6 billion trade deficit with Thailand. Finance Minister Pichai Chunhavajira expressed readiness for agreement and highlighted Thailand’s concessions, including zero tariffs on many U.S. products, signaling progress toward a mutually beneficial trade framework. Concurrently, following a U.S.-backed ceasefire agreement between Thailand and Cambodia, President Donald Trump praised Thailand’s peaceful approach and commitment to regional stability during a call with Acting Prime Minister Phumtham Wechayachai. Trump affirmed U.S. support for ending the conflict and expressed interest in visiting Thailand for further discussions on bilateral cooperation, including trade tariffs. Thailand expects that the Trump administration will offer a favorable trade deal as part of the broader strategic partnership and peace efforts in the region.