Thailand Prepares for US Trade Talks Amid Trump Tariff Threat

Finance Minister convenes meetings ahead of Washington trip, aiming to mitigate impact of potential 36% US import tariffs

 

Thailand is gearing up for crucial trade talks with the United States, as the government seeks to mitigate the impact of potential retaliatory tariffs announced by the individual who previously held the US presidency. 

 

Finance Minister Pichai Chunhavajira has convened high-level meetings ahead of his delegation’s trip to Washington next week.

 

Pichai revealed at the Ministry of Finance on Wednesday that Thailand is making comprehensive preparations to negotiate a softening of the US trade measures.

 

The previous US administration had threatened tariffs on imports from all countries with a trade surplus with the US, including a significant 36% levy on Thai goods. However, the implementation of these tariffs has been delayed by 90 days.

 



 

The Thai negotiating team, comprising officials from the Ministries of Commerce, Finance, and Foreign Affairs, is set to travel to the US. Initial plans indicate meetings with US counterparts will take place within the week following Easter (after April 20th).
  

Earlier, Pichai held energy discussions with senior figures from both the public and private sectors, including the Excise Department and PTT Public Company Limited, the national oil and gas conglomerate. 

 

These discussions aimed to gather crucial information, particularly concerning long-term import contracts for liquefied natural gas (LNG) and ethane.

 



 

Pichai stated that Thailand’s negotiating strategy will focus on fostering cooperation with the US to achieve mutually beneficial outcomes. Thailand has been reviewing ways to rebalance the bilateral trade relationship, given its substantial trade surplus with the US, exceeding $40 billion, or 72% of the total.

 

The intention is for Thailand to increase imports from the US, particularly in agricultural products such as maize for the processed food and animal feed sectors, rather than reducing its exports. This aims to address the US trade deficit.
  

In the energy sector, PTT has already secured a long-term agreement to purchase LNG from Houston, Texas, with deliveries scheduled to commence in 2026. 

 

This contract involves over one million tonnes of LNG annually, valued at approximately $500 million. Additionally, a deal for 400,000 tonnes of ethane, worth around $100 million, has been agreed to supply the petrochemical industry.

 

Overall, Thailand's domestic energy needs require the import of approximately 10 million tonnes of LNG annually, secured through various long-term contracts.

 



 

Several of these agreements are due to expire within the next five years, necessitating PTT to secure additional supplies from global sources, prioritising competitive pricing.

 

Potential new suppliers include countries in the Middle East, ASEAN, and potentially the US, with discussions for an additional one million tonnes of LNG from America under consideration.

 

Looking ahead, with Thailand’s infrastructure, including industrial ports and completed LNG storage facilities, becoming increasingly robust, PTT has plans to import and distribute LNG within the region, potentially leading to further increases in imports from the US.

 

Pichai concluded by saying that Thailand has made thorough preparations ahead of the trip to the US. While predicting the exact outcome is impossible, the current focus is on addressing the stated requirements of the US in ways that are achievable for Thailand.

(2025/04/16-00:00)