Thailand moves forward with US tariff negotiations, plans 0% tariff on select imports

Deputy Prime Minister and Finance Minister Pichai Chunhavajira announced following a special Cabinet meeting on Friday that the government has agreed to proceed with the joint Thai-US statement for tariff negotiations after US President Donald Trump imposed a 19% reciprocal tariff on Thai exports.

The next steps involve finalising the tariff details, particularly for products that Thailand plans to impose 0% tariffs on. Some items will immediately benefit from the 0% tariff, while others will require time to adjust, and some may require quotas. The government expects to finalise all details within a month, with the proposal being presented to Parliament for consideration, he said.

Pichai explained that the proposal Thailand submitted to the US before the 19% tariff was announced was not legally binding but was an initial framework agreement. Further details need to be finalised in separate contracts for each item. The government has now presented this proposal in the form of a joint Thai-US statement, which has already been approved by the Cabinet.

Regarding the specific negotiations on purchases from the US, Pichai noted that issues such as the Rule of Origin will need further discussion to determine the final approach.

As for assisting those affected by the US tariffs, Pichai acknowledged that the government has already prepared measures, including providing soft loans to businesses for temporary export working capital and using funds to enhance long-term competitiveness. Discussions are ongoing with the Federation of Thai Industries and the Thai Chamber of Commerce to develop targeted assistance strategies for specific business groups.