Thailand is nearing a deal with the US to lower a 36 percent export tariff before the August 1 deadline

Thailand is very close to forming a trade pact with Washington to reduce an upcoming 36 percent tariff on the nation’s exports before it takes effect on August 1, according to Pichai Chunhavajira, Thailand’s Finance Minister.

The minister told reporters that his team will submit final clarifications and the proposal to trade officials from Washington within days. He added that Bangkok has already provided nearly all the information that Washington requested and expects a deal before the 36% tariff is imposed. He said Thailand will swiftly complete the talks.

“We have completed more than ninety percent of the negotiation. Today or tomorrow should be the very final stretch. There’s just a little bit left,” Pichai said. He noted that US officials have still sent over additional questions that need review to ensure the package is fully complete.

Pichai said Thailand hopes to secure a tariff rate like the ones granted to neighbouring countries. Earlier agreements saw Vietnamese goods face a twenty percent tariff and Indonesian products set at nineteen percent.

To soften the impact of tariffs on its economy, which depends heavily on exports and has grown more slowly than its neighbours in recent years, Thailand has improved its offer. The US used to be the country’s top export market in 2024, accounting for eighteen percent of total shipments, and officials want to limit any harm to that trade.

Thailand has said it will sharply boost its imports of American goods that it needs at home, including farm products, Boeing aircraft, and LNG. This pledge looks to reduce its trade surplus of forty-six billion dollars last year and balance trade between the two countries.

Bangkok promised more investment in the US

Bangkok has also promised more US investment, including support for the Alaskan gas project backed by President Donald Trump. The government expanded its zero‑tariff list for US products to cover ninety percent of items, an increase from just over sixty percent, the Thai Chamber of Commerce clarified.

That chamber, which advises the finance minister, already estimates that the new measures could cut the surplus by seventy percent within 3 years and bring trade roughly into balance within the next 5 years.

When asked whether Washington had pressed for new concessions after last week’s meeting, Pichai said US officials had outlined a set of policy expectations rather than fresh demands. The Thai side is now reviewing those guidelines to see if they can be fully met.

Thailand faces challenges at home with weak consumer spending and the highest household debt in the region. A favorable result in the tariff talks would help calm investor worries in a time of political uncertainty, especially after Prime Minister Paetongtarn Shinawatra’s suspension due to alleged misconduct by the court in handling the Cambodian border dispute.

In Q1 of 2025, Thailand’s exports rose about fifteen percent, driven by early shipments during the ninety-day pause in tariffs.

KEY Difference Wire: the secret tool crypto projects use to get guaranteed media coverage