Govt allocates 200bn baht in soft loans for exporters hit by US tariffs

Thailand to offer 200bn baht in soft loans to exporters hit by US tariffs, as Pichai urges US firms to help reduce proposed 36% import duty.

The Thai government has prepared a 200-billion-baht soft loan package to support exporters expected to be impacted by punitive US import tariffs, Deputy Prime Minister and Finance Minister Pichai Chunhavajira announced on Monday.

Response to Trump’s proposed 36% import tariff

Speaking at the Roundtable: The Art of The (Re)Deal event, Pichai said the financial support is part of a broader relief effort to counter the effects of import tariffs proposed by the administration of former US President Donald Trump.

Trump has announced plans to impose a 36% import duty on certain products from Thailand, citing the large trade deficit between the two countries as justification.Support from state-owned banks

Pichai said the 200-billion-baht soft loan fund will be sourced from state-owned banks, including the Government Savings Bank, the Bank for Agriculture and Agricultural Cooperatives, and the Export-Import Bank of Thailand.

These banks will allow commercial banks to borrow the soft loans at a highly concessional rate of just 0.01%, enabling them to pass on the benefits to affected exporters.

“We will support all types of businesses. We’re currently collecting data from all sectors so that we can roll out financial measures quickly and effectively,” Pichai said.

Relief measures dependent on final US tariff decision

Pichai added that the relief package would be activated once the final decision on US tariffs is confirmed. Although Trump has announced a 36% tariff, the Thai government is still negotiating for a lower rate.

Exporters impacted by the proposed duties are advised to contact the Federation of Thai Industries, which will categorise their cases to ensure the government’s response is targeted and effective.

Medium and large enterprises will be eligible for the support.

US firms in Thailand may help negotiate lower tariffs

Pichai noted that one-third of the Thai exports contributing to last year’s US$30-billion trade surplus were produced by American companies that had long used Thailand as a manufacturing base.

“These US firms rely heavily on Thai skilled labour and local supply chains, which they cannot easily replicate in the US,” Pichai said.

He added that the Thai government will encourage these companies to lobby Washington on Thailand’s behalf to reconsider or reduce the proposed import tariffs.

(2025/07/14-00:00)