US, Thailand reach trade deals ahead of tariff deadline
US and Thailand strike trade agreements before President Trump's August 1 tariff deadline, with hopes for reduced tariff rates.
The United States has secured trade agreements with both Cambodia and Thailand ahead of President Donald Trump’s August 1 tariff deadline, US Commerce Secretary Howard Lutnick confirmed on Wednesday.
In an interview with Fox News’ Sean Hannity, Lutnick provided limited details but expressed surprise at the speed of the negotiations.
“It’s unbelievable. And because he [Trump] uses trade, he gets to invite me on the phone, and I listened all day Saturday while he’s calling Cambodia, Thailand,” Lutnick said.
“And what happens on Monday? They announce a truce. And today, we made trade deals with Cambodia and Thailand.”
The White House and the Commerce Department did not immediately respond to requests for more information.
Trump had leveraged trade talks as a pressure tactic to bring both nations to the negotiating table, warning that Washington would not strike deals while the fighting persisted. Following the peace agreement, Trump contacted leaders in both countries and instructed his trade team to resume negotiations.
After the ceasefire, Thailand’s acting leader, Phumtham Wechayachai, expressed optimism, saying he expected a “very good” trade deal with the US.
Both Thailand and Cambodia face a 36% tariff rate on their goods entering the US starting August 1, their largest export market. The trade-dependent nations were under pressure to avoid the steep levy, especially after Indonesia and the Philippines secured rates of 19%, and Vietnam received 20%.
Thailand is hoping for a final tariff rate between 18% and 20%, in line with its regional neighbours.
Lutnick’s comments came just two days before Trump’s tariff deadline and hours after the US announced a deal with South Korea, which would impose a 15% tariff on imports.
In a last-minute attempt to avoid the punitive tariff, Thailand proposed greater market access for US goods, offering to eliminate tariffs on 90% of its products. It also pledged to reduce its $46 billion trade surplus by 70% within three years and address the rerouting of goods produced in other countries.
Thailand’s exports to the US reached approximately $63 billion last year, accounting for 18% of the country’s total exports. Exports have surged by about 15% in the first half of this year, driven by front-loading of orders following the Trump administration’s delay in implementing high tariffs.
