Thailand Nears Deal with US to Lower 36% Export Tariff Before August Deadline

Thailand is on the verge of finalizing a trade agreement with the United States to reduce a looming 36% tariff on its exports before the August 1 deadline. Finance Minister Pichai Chunhavajira confirmed that negotiations are nearly complete, with over 90% of the deal finalized. Bangkok has submitted nearly all requested information to Washington and expects to resolve remaining details imminently.

The proposed tariff reduction aims to align Thailand's rates with those of neighboring countries, such as Vietnam's 20% and Indonesia's 19%. The US remains a critical export market for Thailand, accounting for 18% of total shipments in 2024. A swift resolution WOULD mitigate economic strain on Thailand's export-driven economy, which has lagged behind regional peers in recent years.