Thai Chamber of Commerce praises 19% US tax deal, urges govt to prepare for impact

Poj Aramwatananont, Chairman of the Thai Chamber of Commerce, expressed high praise for the Thailand negotiation team ("Team Thailand") for successfully reaching a 19% reciprocal tariff agreement with the United States, which allows Thailand to remain competitive with its regional counterparts. Countries like Indonesia and Vietnam currently face similar tariff rates of 19% and 20%, respectively.

Although the new tariff rate is higher than the previous 10%, Poj regarded it as a strong achievement, especially considering that Thailand had faced the possibility of a 36% tariff. The fact that Team Thailand managed to lower the figure to 19% within a limited timeframe demonstrated their dedication, strategic understanding, and proactive negotiation abilities.

“The Thai Chamber of Commerce believes that, while the tariff rate is higher than before, Thailand can still compete effectively in the region with a rate close to that of other ASEAN countries,” he said.

However, he also encouraged the Thai government to consider additional measures, particularly those aimed at helping Thai businesses expand into new markets and prepare for the increased US tariffs. These measures could include support for technology, finance, marketing, and innovation in trade. Furthermore, Poj emphasised the need to closely monitor the “transshipment rate” set by the US at 40% for all countries, as well as preparations to manage imports from the US.

“We are confident that further negotiations will allow for adjustments to the conditions in the future. We hope Team Thailand continues its work in this role for the benefit of Thailand's business sector,” he added.

The Thai Chamber of Commerce also thanked Team Thailand for their hard work and professionalism in protecting the country's interests, urging the private sector to support the government during this transition period to unlock Thailand's full trade potential on the global stage.