Ex-Official Challenges Deputy PM Over U.S. Tariff Deal Clarity
Ex-commerce deputy Vorawong Rangmangkur challenged Deputy PM Suthaphchai over unclear U.S. tariff negotiations, saying Thailand's 12.5% rate under current Section 301 tariffs is 2.5 points higher than regional competitors and citing confusi
Vorawong Rangmangkur, a former deputy minister of commerce, criticized Deputy Prime Minister Suthaphchai Sutthammapanth on September 22, 2025, for her explanation that Thailand had reached a principle agreement on a U.S. reciprocal trade agreement and was working to keep the total tariff rate at 19%, comparable to regional competitors. Vorawong said the explanation failed to answer his questions since early September and only added to public and business confusion.
"Since the beginning of the month I have asked whether the 19% and the 12.5% that Thailand currently faces are the same tariff base or different bases. Two weeks have passed with no direct answer, only recycled numbers presented differently. I ask the deputy PM not to use complex figures as an excuse. Exporters simply need to know the final tariff on Thai goods and whether we can compete," Vorawong said.
The 19% rate was a previous achievement but cannot be treated as a target today, Vorawong noted. He outlined a timeline showing that under IEEPA law, Thai exports faced 36% tariffs until the previous government's negotiating team, led by former Deputy PM Pichai Chuthong and former Commerce Minister Pichai Naripattanaphanth, reduced it to 19%, announced on August 1, 2024. The rate matched Malaysia, Indonesia, and Cambodia and exceeded Vietnam and China at that time.
On February 20, 2025, the U.S. Supreme Court ruled 6-3 that IEEPA did not grant the president tariff authority, ending those duties. The U.S. then imposed temporary 10% tariffs under Section 122 on all countries until July 24, 2025. On the same day, the U.S. Trade Representative announced Section 301 tariffs on 60 trading partners, with Thailand at 12.5% while Cambodia, Indonesia, and Malaysia received 10%.
"The 19% figure was good in the 2024 context, but with the legal basis now changed, it should not be a 2025 target. When the minister says the goal is to maintain 19%, that mixes numbers from different legal frameworks and creates confusion to justify political failure. Setting such a target may mean accepting a higher rate than Thailand should achieve today," Vorawong said.
Vorawong stressed that "competitive parity" only has meaning when compared on the same tax base. Currently under Section 301, Thai exporters bear a tariff cost roughly 2.5 percentage points higher than Cambodia, Indonesia, and Malaysia, which compete directly with Thailand across many product categories. Even though Vietnam faces 12.5% like Thailand, that does not mean Thailand is not disadvantaged, as three other competitors have lower rates.
Vorawong asked the deputy PM to answer three specific questions about the negotiations.
