Thailand Braces for US Tariffs, Pushes IPEF Deal

Deputy Prime Minister and Finance Minister Ekniti Nitithanprapas held a media briefing at Government House today regarding the US announcement of a 12.5% import tariff under Section 301 on over 37 trading partners, including Thailand. He confirmed the government is urgently assessing the impact and negotiating closely with the United States, and has coordinated with Commerce Minister Supa Jutatip, who is directly overseeing the matter. Ekniti noted that many Thai private sector products already have tax exemptions, so overall impact on Thailand is expected to be limited. However, some goods remain unexempted, and the government must consult closely with the private sector to identify which industries are most affected and determine what measures are needed to support them. Ekniti emphasized that Thailand's most critical task is to accelerate negotiations with the United States, particularly on the Indo-Pacific Economic Framework (IPEF). Some countries have already concluded negotiations and secured a 10% tariff rate, while Thailand remains in the process of pushing for a final agreement. "What matters most is that we must negotiate with the US as quickly as possible, because other countries that have finished already got 10%, but Thailand hasn't yet," Ekniti said. He added that if Thailand can negotiate quickly, the impact of the tariff measures will be reduced. He also suggested the government should use the US raising forced labor issues as an opportunity to reform and upgrade the country's standards to align with international norms. Ekniti stated that upgrading labor standards and production processes should not be viewed merely as foreign conditions, but as an important opportunity to enhance Thailand's long-term competitiveness. When Thai standards match those of competing countries, trade costs from protectionist measures will fall, and Thai businesses will have more room to compete. As for the broader impact, Ekniti assessed that it would likely affect only certain sectors that lack tariff exemptions, but he could not yet specify all affected product groups, particularly in food or other industries, and asked for clearer data first. He said his team will hold a follow-up meeting with the secretary's team and relevant agencies to assess the impact on Thailand's overall economy, including exports, by industry, and business competitiveness, before determining negotiation guidelines and additional support measures. "We need to see the details first to identify which product groups are truly affected, but overall I think the impact will be limited because many items already have exemptions. For the rest, we need to hurry up with negotiations," Ekniti concluded.