22 July 2025
https://www.nationthailand.com/business/economy/40052871
Thailand has strongly affirmed its position that it will not concede to zero per cent tariffs on all US imports, citing the vital need to protect its agricultural sector and domestic businesses as negotiations for reciprocal customs duties approach an August 1, 2025 deadline.
Should a satisfactory agreement not be reached in time, Thailand faces the prospect of its tariff rate remaining at 36 per cent, a figure significantly higher than that of its regional competitors within ASEAN.
The "Thailand Team" recently engaged in its second round of negotiations with the Office of the United States Trade Representative (USTR) via teleconference on 17 July 2025.
During this session, Thailand submitted an updated proposal and is now awaiting Washington's response. The Thai government is hopeful that the outcome will see its tariffs reduced to a level competitive with other nations in Southeast Asia.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira revealed that the reciprocal tariff discussions with the US are progressing at an operational level, with minor figure adjustments currently under review following the submission of Thailand’s additional offer.
The scheduling of the next negotiation round will hinge on the US response.
Concurrently, Deputy Finance Minister Julapun Amornvivat underscored Thailand’s unwavering negotiation strategy, stating that the country would not accept a proposal that fully opens its market to all US imports, unlike some other nations that have concluded agreements with Washington.
This stance stems from profound concerns over potential adverse economic impacts.
Julapun cited Vietnam as an example, which secured a 20 per cent tariff on its exports to the US whilst agreeing to zero per cent on imports from the US.
However, he warned that such agreements often necessitate broader market liberalisation due to Most-Favoured Nation (MFN) principles, compelling a country to extend similar concessions to all its Free Trade Agreement (FTA) partners.
He stressed that the tariff negotiations are founded on the principle of mutual benefit. "If only one side gains all the benefits, an agreement cannot be reached," he asserted.