Thailand and US Poised to Announce 19% Tariff Deal, Key Trade Talks to Follow
Initial import tariff agreement struck, paving the way for complex negotiations on product rules and sensitive goods expected to last up to a year
- Thailand and the United States are on the verge of announcing a preliminary 19% import tariff agreement, which is a crucial first step before more detailed negotiations.
- This initial deal will be followed by key trade talks on more complex issues, including sensitive goods (like beef and pork), Rules of Origin (ROO), and Regional Value Content (RVC).
- The reduction to a 19% tariff, from a potential 36%, is projected to save Thailand over 300 billion baht and help maintain its trade competitiveness.
- The new 19% tariff rate is scheduled to take effect for goods imported or removed from warehouses starting on August 7, 2025.
Thailand and the United States are on the cusp of issuing a joint statement confirming a 19% import tariff agreement, a crucial first step before detailed negotiations commence on sensitive goods and rules of origin.
This development is expected to help Thailand maintain its trade competitiveness, according to the Deputy Minister of Commerce.
Chantawit Tantasith, Deputy Minister of Commerce, announced today that the US approval of the 19% import tariff is positive news for Thai trade.
Following in-principle approval by the Thai Cabinet on 1st August, the formal announcement from the Office of the United States Trade Representative (USTR) is anticipated soon.
The agreement will then undergo parliamentary review before its official signing and subsequent domestic legal processes in Thailand, allowing for broad sectoral input.
However, the journey towards a comprehensive agreement is far from over.
Thailand still needs to push for critical issues such as Rules of Origin (ROO) and the calculation of Regional Value Content (RVC) – the proportion of regionally sourced raw materials used in production.
These negotiations are vital to ensure maximum benefit for Thai businesses and to facilitate their adaptation without severe disruption.
"The Ministry of Commerce is working intensively on both adapting regulations to align with US measures and providing support to entrepreneurs," Chantawit stated. "We are also actively exploring new markets to boost exports, without neglecting vital markets like the US."
Sources from the Ministry of Commerce indicate that technical negotiations, including discussions on sensitive goods such as beef and pork (which are not generally banned by Thailand but subject to local regulations on substances like beta-agonists), as well as specific ROO and RVC percentages for both agricultural and industrial sectors, and services, will only begin after the joint statement.
It was confirmed that security matters are not part of these trade discussions.
The entire negotiation process, involving the US and over 20 other countries, is expected to take anywhere from three months to a year.
The 17% reduction from a potential 36% tariff to 19% is projected to save Thailand over 300 billion baht.
The 19% tariff rate will apply to goods imported or removed from warehouses for consumption from 00:01 on 7th August 2025, with specific conditions:
For goods whose final transportation began before 7th August 2025 and which leave the warehouse or are sold in the US before 5th October 2025, a 10% tariff will apply.
For goods whose final transportation began before 7th August 2025 but which leave the warehouse or are sold in the US on or after 5th October 2025, a 19% tariff will be imposed.
For goods whose transportation begins on or after 7th August 2025, a 19% tariff will apply.
Chotima Iemsawasdikul, Director-General of the Department of Trade Negotiations, provided an update on the proposed 1 billion baht support fund to assist manufacturing and service sectors affected by trade liberalisation.
This fund is currently undergoing legal and regulatory review and is expected to receive Cabinet approval soon, forming part of broader government aid measures for impacted businesses.
