Thailand Awaits US Tariff Decision Tonight After 'Tough' Trade Talks

Deputy PM Pichai Chunhavajira expresses cautious optimism as Bangkok braces for US tariff announcement, following a reported trade deal

 

Thailand's Deputy Prime Minister and Finance Minister Pichai Chunhavajira is on tenterhooks as the Kingdom awaits the United States' official announcement on new trade tariffs, expected tonight.

 

This comes after the US Commerce Secretary, Howard Lutnick, confirmed that agreements had been reached with both Thailand and Cambodia.

 

In a Facebook post on Thursday, Pichai stated that Thailand was in its "final 24 hours" before learning the outcome of the trade tariff decision from the US. 

 

He acknowledged the widespread public and business sector queries regarding the potential "Reciprocal Tariff" under President Trump's policy.

 


"We do not yet know the official results," Pichai explained, "but we expect to be notified by the US within the next 24 hours." 


 

He emphasised the diligent and comprehensive efforts of the Thai negotiating team, which meticulously analysed data, trade statistics, international law, and potential impacts on manufacturing, exports, employment, and overall economic stability.

 


"We are committed to proposing conditions and exchanges that Thailand can accept, striving to preserve the country's interests as much as possible," Pichai affirmed. 


 

He added that the team also had to carefully consider the demands from the US, describing them as "one of the toughest and most complex" negotiating partners, particularly concerning the intricacies of the Agreement on Reciprocal Tariffs (ART).
  

Over recent weeks, the Thai team engaged in multiple rounds of constructive and reasoned exchanges with the US, aiming for a mutual resolution built on equality and a sustainable economic relationship. 

 

Despite the uncertainty of the outcome, Pichai assured the public that the Thai negotiating team had not been "silent, idle, or easily compromising." 

 

He stressed that every issue had undergone deep analysis, prioritising the nation's best interests.

 


"If the negotiation results exceed expectations, we will all be delighted," Pichai concluded. "But if the outcome is less than hoped, I trust everyone will understand that the government and the negotiating team have tried their utmost." 


 

He extended his gratitude for public support, hoping Thailand would overcome this challenge through collective cooperation and resilience.

 

Pichai's comments follow reports of US Commerce Secretary Howard Lutnick's confirmation on Wednesday that the United States had secured trade agreements with both Cambodia and Thailand, ahead of President Donald Trump’s August 1st tariff deadline. 

 

In an interview with Fox News, Lutnick expressed surprise at the speed of negotiations, recounting how President Trump personally engaged with the leaders of Cambodia and Thailand after a recent peace agreement.

 

Following the ceasefire, Thailand’s acting leader, Phumtham Wechayachai, had expressed optimism for a "very good" trade deal. 
  

Both Thailand and Cambodia were facing a steep 36% tariff rate on their goods entering the US from August 1st, a significant concern given the US is their largest export market.

 

Trade-dependent nations were under considerable pressure to avoid such high levies, especially after regional competitors like Indonesia and the Philippines secured 19% rates, and Vietnam achieved 20%. 

 

Thailand is reportedly hoping for a final tariff rate between 18% and 20%, aligning with its neighbours.

 

In a bid to avert the punitive tariff, Thailand had proposed increased market access for US goods, offering to eliminate tariffs on 90% of its products.

 

It also pledged to reduce its $46 billion trade surplus by 70% within three years and address the rerouting of goods produced in other countries. 

 

Last year, Thailand's exports to the US amounted to approximately $63 billion, representing 18% of the country's total exports. These exports have seen a surge of about 15% in the first half of this year, driven by companies front-loading orders in anticipation of the tariffs.

(2025/07/31-00:00)