Thailand Seeks U.S. Tariff Cuts During Trade Talks
Thailand's trade delegation will negotiate with the U.S. in July to reduce tariffs on Thai exports from 12.5% to 10%, citing the country's significant $50 billion trade surplus and arguing that tariff hikes would increase prices for America
Deputy Prime Minister and Commerce Minister Suphajee Suthummaphan announced that a Thai delegation will travel to the United States on July 15-17, 2025, to negotiate trade matters under Section 301 and Section 122 of the U.S. Trade Act of 1974, with Section 122 set to expire on July 24, 2025. The talks aim to protect Thailand's export sector interests while addressing U.S. concerns.
Thailand ranks seventh globally in trade surplus with the U.S., worth approximately $50 billion. The primary objective is to negotiate a reciprocal trade agreement to reduce import tariffs on Thai goods from 12.5% to 10%, matching neighboring Malaysia. Thailand currently faces tariff disadvantages due to being classified as lacking adequate forced labor protections, though it is rapidly implementing legislation and producing evidence that its manufacturing processes don't involve forced labor.
Regarding Section 301 investigations, the U.S. has expressed concern that Thailand serves as a transshipment point for Chinese goods. However, Thailand has data showing that three major industrial sectors—machinery, automobiles, and rubber products—have local content levels of 70-90%, with no category below 60%. Additionally, over 30% of Thailand's trade surplus actually stems from U.S. companies operating production facilities in Thailand.
Suphajee outlined several non-negotiable positions Thailand will maintain, including refusing to lower beef standards as the U.S. has requested, and insisting on freedom to trade with nations like China without U.S. restrictions. Thailand will also propose exempting six product categories from tariffs, including jasmine rice, emphasizing to the U.S. that tariff increases would directly impact American consumers' food prices, as these are goods the U.S. cannot produce domestically and difficult to source elsewhere.
