Pichai confident of positive outcome from US tariff negotiations, awaits response tonight

Deputy Prime Minister and Finance Minister Pichai Chunhavajira on Thursday provided an update on the ongoing tariff negotiations with the United States, revealing that Thailand had submitted its final draft of the tariff proposal. He expects to receive an unofficial response on the matter later this evening, ahead of the critical August 1, 2025 deadline.

“We’ve been working on this since early this morning, maintaining continuous communication with the US. We’ve addressed their feedback from yesterday and are now fine-tuning the details. It’s a delicate matter, but we’re doing our best. While it’s challenging, I’m confident we will receive good news tonight,” said Pichai.

He explained that while the result would not be officially confirmed tonight, it would serve as a signal that the uncertainties are diminishing, providing Thailand with clearer direction for planning its economy for the second half of the year.

Pichai emphasised that the proposal was not based on concessions from Thailand alone, but rather the result of careful and comprehensive negotiations that aimed at a "win-win" situation for both countries. The proposal includes reducing tariffs on certain imports, which Thailand argued is not a new issue, as the country already has Free Trade Agreements (FTAs) with several nations under similar terms. He also mentioned that Thailand has proposed the purchase of goods it already needs, such as items it cannot produce domestically or does not have sufficient quantities of, and only if the prices are competitive.

In addition, Thailand has suggested joint investment cooperation between both nations, especially in areas of US interest, such as infrastructure and advanced technology. Non-Tariff Barriers (NTBs), including regulatory complexities and approval processes, were also discussed, with Thailand acknowledging that these obstacles needed to be addressed regardless of the tariff issue, as they hinder the country’s competitiveness.

Pichai further stated that if the response from the US is favourable, it would be a positive signal for Thailand’s economy, exports, and short-to-medium-term investments. However, if the outcome is less favourable, he urged the public to understand that the Thai team had worked thoroughly and carefully on all aspects. The government has already prepared measures to support affected sectors, including improving the competitiveness of small businesses, supporting the manufacturing sector, and enhancing cost structures to remain competitive with other ASEAN countries.

Lavaron Sangsnit, Permanent Secretary of the Ministry of Finance, also confirmed that Thailand’s final proposal had been submitted to the US, with no further amendments being made. He expressed hope for a response later this evening, adding, “We’re waiting for the outcome today, and I believe it will be good news.”

The Ministry of Finance and the negotiation team are fully prepared and confident that the proposal will meet the needs of both economic and trade cooperation, as well as foster long-term collaboration, he said.