Thailand Seeks Relief from US Tariffs, Plans Trade Talks Next Week

Thailand is preparing to engage in discussions with Trump administration officials next week, aiming to secure an exemption from a planned 36% reciprocal tariff on Thai goods, Bloomberg reports.

The government is finalizing proposals to reduce its $46 billion trade surplus with the United States.

A delegation led by Deputy Prime Minister and Finance Minister Pichai Chunhavajira is scheduled to meet with US trade officials in Washington on April 21, according to a statement released on Monday by government spokesman Jirayu Houngsub. Before the meeting, Pichai will travel to Seattle this week to engage with American business leaders from the agriculture, industry, and investment sectors.

The negotiation team, which includes Commerce Minister Pichai Naripthaphan, will be guided by the principle that “Thailand is a constructive partner” of the US, and is committed to “creating a trade balance and strengthening sustainable economic partnership,” Jirayu stated.

Prime Minister Paetongtarn Shinawatra’s administration has warned that the unexpectedly high levy on exports to the US – Thailand’s largest export market – could reduce the country’s economic growth by at least one percentage point this year if it remains unaddressed. Thailand has publicly expressed its willingness to increase imports of US farm goods, such as corn for its animal feed industry, and energy products, including natural gas and ethane. The country is also considering reducing import duties and eliminating non-trade barriers.

Thailand’s trade surplus with the US more than doubled to $46 billion last year, up from about $17 billion at the start of Donald Trump’s first term. In contrast, Thailand’s trade deficit with China ballooned to $45 billion in 2024 from below $20 billion in 2018 as Chinese companies ramped up investment to evade high US tariffs.

Thai officials are pledging to crack down on the misuse of certificates of origin by Chinese companies trying to circumvent high US tariffs. They will present any potential deal with Washington as an opportunity to overhaul its import policies. In addition, they will relay Thailand’s concerns about the impact of the 145% US tariff on Chinese goods on local manufacturing, fearing an influx of cheap imports.

Thailand’s negotiation strategy is based on recommendations from a working group led by Paetongtarn, which has gathered feedback from local business groups and experts, Jirayu added.