Thailand submits new trade proposal offering zero tariffs on many US goods
Washington has threatened to impose a 36 per cent levy on Thai imports if no reduction is negotiated before July 9.
BANGKOK - Thailand has submitted a new trade proposal to the United States, offering to cut levies to zero on many US imports in a bid to avoid steep tariff hikes on its own products, the finance minister said on July 7.
Washington has threatened to
impose a 36 per cent levy on Thai imports if no reduction is negotiated before July 9, when a 90-day pause capping tariffs at a baseline of 10 per cent for most nations expires.
The United States accounted for 18.3 per cent of Thailand's shipments in 2024, amounting to US$54.96 (S$70.2 billion) billion in value, making it Thailand's biggest export market. Washington says its deficit with Thailand stood at US$45.6 billion.
'We heard their feedback and what they were especially interested in, and we adjusted it (the trade proposal),' minister Pichai Chunhavajira told reporters, who returned from Washington last week following talks.
The US Trade Representative's office praised Thailand's efforts but suggested minor adjustments, Mr Pichai said.
He said the improved proposal includes zero tariffs on many US imports and other measures that aim to bring trade with the United States into balance in less than 10 years, sooner than earlier proposed. It also includes commitments to increase imports of American goods to boost bilateral trade.
'It's not just about reducing tariffs but also about opening up trade further,' he said.
Top stories
Swipe. Select. Stay informed.
Singapore Eligible S'poreans to get up to $850 in GSTV cash, up to $450 in MediSave top-ups in August
Singapore Four golf courses to close by 2035, leaving Singapore with 12 courses
Singapore Fewer marriages and births in Singapore in 2024; greater stability for later cohorts
Singapore Paternity leave take-up in S'pore rises to 56% in 2023; experts hope for further boost after extension
Singapore Construction starts on Cross Island Line Phase 2; 6 MRT stations in S'pore's west ready by 2032
Singapore $1.46b nickel scam: Ng Yu Zhi opts to remain silent after judge calls for his defence
Singapore More nurses to anchor care in community settings as Singapore's population ages
Life How to cope with the heat when travelling: 5 expert-backed tips
'Of course, we are not offering a 0 per cent tariff across the board, but we are providing zero tariffs on a substantial number of items,' Mr Pichai said.
'In my view, the conditions we have proposed are very favourable and should satisfy them,' he added.
Trade talks are expected to continue after the tariff pause ends, as negotiating trade terms requires consultations among multiple stakeholders, Mr Pichai said.
Thailand's top three exports to the United States in 2024 were computers, teleprinters and telephone sets, and rubber products. Its top three imports from the US were crude oil, machinery and parts, and chemicals.
Mr Pichai said earlier that Thailand would import more US natural gas and cut tariffs on imports of corn from the United States. US corn is subject to a 73 per cent import tax, according to the Thai Feed Mill Association.
The Thai state-owned energy giant, PTT Group in June signed an agreement to procure 2 million metric tonnes of liquefied natural gas per year from Glenfarne's Alaska LNG project over a 20-year term. The US$44 billion project has been championed by US President Donald Trump.
Mr Pichai earlier said South-east Asia's second-largest economy could expand by just over 1 per cent in 2025 due to the impact of US tariffs.
Thailand's economy has struggled with weak consumption, soaring household debt, slowing tourism, trade uncertainty and
potentially steep US tariffs .
In June, the central bank forecast economic growth of 2.3 per cent in 2025, after 2024's growth of 2.5 per cent lagged peers in the region. REUTERS
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles

Straits Times
13 minutes ago
- Straits Times
The Usual Place Podcast: What's next for PSP following its post-GE leadership shake-up?
Sign up now: Get ST's newsletters delivered to your inbox What's next for PSP following its post-GE leadership shake-up? Synopsis: Join Natasha Ann Zachariah at The Usual Place as she unpacks the latest current affairs with guests. Two months after its dismal showing at the 2025 General Election, Progress Singapore Party (PSP) has shaken up its leadership team. On July 5, it announced that its founder and chairman Tan Cheng Bock, and vice-chair Hazel Poa had stepped down from their roles in the central executive committee (CEC), the party's highest decision-making body. Party treasurer S. Nallakaruppan also relinquished his position. All three will remain members of the party. Dr Tan has been designated party adviser. Ms Poa was a Non-Constituency MP (NCMP) in the last term of Parliament, along with party chief Leong Mun Wai. At a press conference at the party's headquarters in Bukit Timah Shopping Centre on July 5, Mr Leong announced a renewal plan, and introduced three new members who were co-opted into the CEC. The first is Ms Stephanie Tan, a full-time homemaker and former lawyer, who was the PSP candidate for Pioneer SMC. The other two are Mr Sani Ismail, an in-house legal counsel who contested West Coast-Jurong West GRC, and Mr Lawrence Pek, a former secretary-general of the Singapore Manufacturing Federation, who contested Chua Chu Kang GRC. Ms Tan joins me in this podcast to talk about being part of PSP's refreshed leadership team, the insights she gleaned from walking the ground as a first-time candidate, and the challenges of a political party without a presence in Parliament. The Usual Place podcast is livestreamed at noon on YouTube on Thursdays. Subscribe to the YouTube channel to catch the podcast when it airs on July 10. Top stories Swipe. Select. Stay informed. World Trump's ambassador nominee to Singapore Anjani Sinha has a rough day at Senate hearing Asia Dr Mahathir at 100: Still haunted by the Malay Dilemma Singapore 'Give a positive review': Hidden AI prompt found in academic paper by NUS researchers Singapore Apex court upholds SMC's conviction of doctor who gave patients unapproved hormones Multimedia 60 objects to mark SG60: Which is your favourite? Singapore Singaporean fugitive arrested in Thailand for suspected drug trafficking and handed over to CNB World Trump issues tariff notices to 7 minor trading partners, hits Brazil with 50% tariff Business SGX securities turnover up 23% in June, bringing financial year's gain to 28% Host: Natasha Ann Zachariah ( natashaz@ ) Read Natasha's articles: Follow Natasha on her IG account and DM her your thoughts on this topic: Follow Natasha on LinkedIn: Follow The Usual Place Podcast and get notified for new episode drops every Thursday: Channel: Apple Podcasts: Spotify: YouTube: Feedback to: podcast@ --- Follow more ST podcast channels: All-in-one ST Podcasts channel: ST Podcasts website: ST Podcasts YouTube: --- Get The Straits Times app, which has a dedicated podcast player section: The App Store: Google Play:

Straits Times
40 minutes ago
- Straits Times
Israel says missile launched from Yemen was intercepted
Sign up now: Get ST's newsletters delivered to your inbox The Israeli military said on Thursday that a missile launched from Yemen was intercepted after air raid sirens sounded in several areas across the country. The Iran-aligned Houthis, who control the most populous parts of Yemen, have been firing at Israel and attacking shipping lanes. Houthis have repeatedly said that their attacks are an act of solidarity with Palestinians in Gaza, where Israel's military assault since late 2023 has killed more than 57,000 people, Gaza authorities say. Most of the dozens of missiles and drones they have launched have been intercepted or fallen short. Israel has carried out a series of retaliatory strikes. REUTERS

Straits Times
an hour ago
- Straits Times
Australia's beef exports to the US surge despite Trump tariffs
Sign up now: Get ST's newsletters delivered to your inbox The US is the biggest market for Australia's almost A$14 billion beef and veal export sector. Australia's total beef exports to the US rose significantly in June in the face of US President Donald Trump's new tariff regime, which saw the American leader specifically single out Canberra for refusing to accept adequate red meat imports. Exports of chilled and frozen beef to the US jumped 23 per cent from June 2024 , according to Meat & Livestock Australia data released on J uly 10 . Shipments in the first six months were up almost a third from the same period in 2024 . The US is the biggest market for Australia's almost A$14 billion (S$11.7 billion) beef and veal export sector, and is one of America's largest foreign sources of red meat. Shipments to the US currently face a flat 10 per cent tariff, and Mr Trump singled out the nation for not buying enough US produce in the April press conference where he announced his administration's 'reciprocal' trade rates. Exports to China more than doubled from June 2024 and were just a third below those to the US, the July 10 data showed. Diplomatic tensions had hampered agricultural shipments between the two nations following the Covid-19 pandemic, although relations improved after the election of the centre-left Labor government in 2022, and trade has largely resumed. BLOOMBERG Top stories Swipe. Select. Stay informed. World Trump's ambassador nominee to Singapore Anjani Sinha has a rough day at Senate hearing Asia Dr Mahathir at 100: Still haunted by the Malay Dilemma Singapore Academic paper by NUS researchers withdrawn from peer review after hidden AI prompt found Singapore Apex court upholds SMC's conviction of doctor who gave patients unapproved hormones Multimedia 60 objects to mark SG60: Which is your favourite? Singapore Singaporean fugitive arrested in Thailand for suspected drug trafficking and handed over to CNB World Trump issues tariff notices to 7 minor trading partners, hits Brazil with 50% tariff Business SGX securities turnover up 23% in June, bringing financial year's gain to 28%