Thailand Says Nearing Deal With US To Lower 36% Export Tariff

Thailand is close to an agreement with the US to lower a threatened 36% tariff on its exports ahead of the Aug. 1 deadline, according to Finance Minister Pichai Chunhavajira, who expects trade talks to conclude within days. 

The Southeast Asian nation will submit additional clarifications and final details of its proposal to US trade officials in the coming days, Pichai said Tuesday. A deal is expected to be announced before the new tariff rate takes effect, as Thailand has already provided the Washington with “almost everything” requested.

“We’ve completed more than 90% of the negotiation. Today or tomorrow should be the very final stretch. There’s just a little bit left,” said Pichai, who leads Thailand’s team of trade negotiators. “Some requests for explanations and asks came from their side, and I need to review those to make sure everything is truly complete.” 

Pichai expects Thailand to get a new tariff rate that’s in line with its neighbors. President Donald Trump previously has announced deals for 20% tariffs on Vietnamese goods and 19% for Indonesia. 

Bangkok has sweetened its offers to Washington in a last-stretch bid to lower the punitive tariff and minimise the impact on its export-reliant economy, which has lagged behind regional peers over the last decade. The US was Thailand’s largest export market in 2024, accounting for 18% of total shipments. 

Thailand has offered to significantly increase purchases of US goods for which there is domestic demand — including agricultural products, liquefied natural gas and Boeing Co. aircraft — to reduce a trade surplus which stood at $46 billion last year. It has also pledged to invest more in the US, including in the Trump-backed Alaska gas project. 

Thai government has widened a list of US products that will be subject to zero tariffs to 90% of all items, up from over 60% previously, according to the Thai Chamber of Commerce, which advises Pichai. The new offers could potentially help cut the trade surplus by 70% within three years and lead to balanced trade within five years, it said. 

When asked if the US had made new demands following last week’s ministerial talks, Pichai said: “They’re not exactly asking for more, but they do have a list of expectations— what the policies should look like and how certain issues are handled.” He added that the government is reviewing whether it can meet those expectations.

Thailand’s economic growth is already under strain due to the region’s highest level of household debt and weak domestic consumption. A favorable trade deal would also help ease investor concerns amid political uncertainty. Prime Minister Paetongtarn Shinawatra was recently suspended by the court over alleged misconduct in managing a border dispute with Cambodia.

Thailand’s exports rose about 15% in the first five months of the year, driven largely by front-loading during the 90-day pause to allow tariff talks.