US Postpones Trade Talks with Thailand, Demands Action on “Issues” Ahead of Potential 36% Tariff

Trade negotiations between the United States and Thailand have been postponed at the request of Washington, which is seeking action from the Southeast Asian nation on a set of unspecified “issues” before moving forward with discussions over a potential 36% tariff, Bloomberg reports.

Prime Minister Paetongtarn Shinawatra informed reporters on Tuesday that no new dates have been set for the talks, which were originally scheduled for April 23. She declined to elaborate on the specific nature of the issues raised by the US.

“We’ll approach the talks with the mindset that we’ll give them something if they’re also willing to give us something,” Shinawatra said after a cabinet meeting, hinting at potential concessions on Thailand’s side.

According to Finance Minister Pichai Chunhavajira, the US is urging Thailand to implement more stringent measures to prevent the misuse of certificates of origin by other countries attempting to evade higher US import tariffs. Furthermore, the US is seeking Thailand to address concerns over potential currency manipulation.

Thailand is among several Southeast Asian nations facing the highest import levy rates due to their trade surpluses with the US. Thailand’s trade surplus with the US has more than doubled, reaching approximately $46 billion last year from about $17 billion at the beginning of President Donald Trump’s first term.

This news follows a recent move by the US to impose new duties as high as 3,521% on solar imports from four Southeast Asian countries, including Thailand. This action is the culmination of a probe that concluded solar manufacturers were unfairly benefiting from government subsidies and selling exports to the US at prices lower than the cost of production.

Despite the current situation, Commerce Minister Pichai Naripthaphan, a member of the Thai negotiation team, expressed hope for a “good outcome” in future negotiations, citing the “good and longstanding” bilateral relations between the two countries.

Shinawatra’s administration has warned that the higher-than-expected levy on Thai shipments to the US – Thailand’s largest export market – could potentially shave off at least one percentage point from the country’s economic growth this year if the tariff isn’t successfully negotiated down.