Thai Finance Minister Dismisses US Tariff Claims Amid Ongoing Talks

Pichai Chunhavajira clarifies that reports of an 18% US import tax are "estimates," not a finalised agreement, as Bangkok pushes five-point proposal

 

Thailand's Finance Minister Pichai Chunhavajira has refuted widespread reports claiming that the United States has imposed an 18% import tax on Thai goods.

 

He clarified on Thursday that the figure is merely an "estimation" used by the Bank of Thailand and economists for modelling potential economic impacts, stressing that negotiations between the two nations are still very much in progress.

 


"The news circulating on social media that Thailand has reached a final agreement on a US tax of 18% is not true," Pichai stated. "We have not reached a conclusion. My understanding is that the 18% figure is purely a projected number based on hypothetical assumptions. The fact is, we are still in negotiations."


 

The Minister explained that discussions with the US have encompassed four or five key areas, including tariff rates, non-tariff trade barriers, increasing US imports, addressing fraudulent claims of origin for goods, and tackling transhipment issues.

 

These points have been the consistent focus of bilateral talks aimed at resolving trade imbalances.
  

Pichai reiterated that Thailand's core proposal continues to be based on the five main points already submitted to the US for consideration.

 

While some minor additions might be introduced, they will remain within this overarching framework, as working-level negotiations have provided insights into potential adjustments.

 



 

Thailand's five-point proposal, aimed at reducing the trade surplus with the US by 50% within five years and fostering closer strategic partnership, includes:

Enhanced Cooperation in Processed Food: Leveraging the strengths of both countries to develop the processed food industry, notably through importing US agricultural products for processing and re-export globally. This also involves engagement with the US agricultural sector, a crucial political base for figures like Donald Trump.

Increased US Imports: Thailand plans to boost imports of essential goods from the US, such as energy (crude oil, LNG, ethane), aircraft and parts, armaments, and agricultural produce like corn, soybeans, and beef. This move seeks to bolster commercial ties and meet domestic economic demands.
  

Market Opening and Trade Barrier Reduction: A significant objective is to reduce import tariffs under the Most Favoured Nation (MFN) system for 11,000 items by 14%, alongside a reduction in non-tariff barriers (NTBs). This also entails opening markets for US products, including cherries, apples, wheat, corn, and meat products, by easing quotas and restrictions.

Strict Enforcement of Rules of Origin: Implementing robust rules of origin to combat the mislabelling of goods as "Made in Thailand" when they originate from third countries and are merely transhipped through Thailand to the US. This will involve heightened surveillance to protect the integrity of Thai products in the US market.

Promoting Thai Investment in the US: The Thai government is encouraging the expansion of Thai private sector investment in the US over the next four years, particularly in the energy sector (e.g., LNG projects in Alaska) and large-scale agricultural ventures. Currently, Thai firms have invested in 70 locations across 20 US states, creating over 16,000 jobs and amounting to an investment value of $16 billion.

(2025/06/26-00:00)