Commerce Ministry ready to mitigate US trade policy impact

The Commerce Ministry on Tuesday confirmed its readiness to engage in negotiations and expand markets in response to US trade policies affecting Thai exports.

This development follows President Donald Trump’s signing of an executive order imposing reciprocal tariffs on goods imported into the United States, aimed at reducing the country’s trade deficit. Thailand is subject to a 36% reciprocal tariff.

Vuttikrai Leewiraphan, the ministry's permanent secretary and chair of the working team on US trade policy, explained that the additional 10% tax on goods imported into the US took effect at 0.01am on April 5 (Washington time).

The reciprocal tariff is set to come into effect at 0.01am on April 9. Vuttikrai noted that these tariffs are in addition to the most-favoured-nation (MFN) rate, as well as existing fees and other charges previously applied to each country.He clarified that the reciprocal tariff will not apply to imported steel, aluminium, cars, and automotive components, which are already subject to a 25% tariff previously imposed by the US.

Furthermore, the reciprocal tariff will also not apply to copper, pharmaceuticals and medical supplies, semiconductors, lumber, certain minerals and energy products. The US may later introduce specific tariffs on these items, he added.

Vuttikrai confirmed that the US remains open to negotiations with trade partners to create more balanced and equitable trade relations, with a focus on reducing its trade deficit.

To this end, the Thai government has tasked relevant agencies with reviewing the working team’s proposals in preparation for upcoming negotiations aimed at mitigating the impact of the US reciprocal tariff on Thailand.

He added that the government is developing measures to support Thai exporters affected by the new US tariffs and is also working to expand trade with markets that have high purchasing power, including halal and emerging markets.

The government is expediting negotiations on free trade agreements (FTAs) to conclude them as swiftly as possible, while also exploring the possibility of new FTAs with promising emerging markets such as the Middle East, Latin America and Africa, he said.

(2025/04/08-00:00)