Thailand to increase US imports lower taxes in tariff response

BANGKOK - Thailand will increase US imports, lower some of the higher taxes on American goods and address non-tariff barriers, the Finance Minister said on April 8, as the government seeks to negotiate a better deal on new US tariffs.

The tariff of 36 per cent imposed on South-east Asia’s second-largest economy is among the higher rates imposed by the administration of US President Donald Trump, greater than officials had anticipated.

Thailand was in no rush to travel to the US for negotiations because proposals needed time to prepare, said Mr Pichai Chunhavajira, who will head Thai negotiations.

He said Thailand would seek to balance trade with the US within 10 years.

Prime Minister Paetongtarn Shinawatra on April 8 said a meeting between Thailand and the US Trade Representative had been confirmed, but gave no further details.

Thai exporters should also seek new markets to diversify risks, she said, adding that the government would have relief measures for businesses hit by the tariffs. The tariffs could knock a percentage point from growth in 2025 in the export-reliant country, Mr Pichai said.

Before the steep tariff was announced, the government was targeting growth of 3 per cent in 2025, after 2024’s 2.5 per cent expansion, a rate far adrift of most of its regional peers.

The government has said it would import more US goods, such as corn, soya beans, crude, ethane, liquefied natural gas, cars and electronics, and aircraft, and would review rules on imports of US pork.

Thailand had a trade surplus with the US of US$35.4 billion (S$47.8 billion) in 2024, according to government data, while Washington has put its deficit with Thailand at US$45.6 billion.

Thailand’s benchmark stock index fell as much as 6.1 per cent on April 8, the first trading day since the tariffs announcement.