Thailand’s Finance Minister, Pichai Chunhavajira, announced a new 19% tariff rate on imports from the United States, effective August 7, 2025. This rate is a significant reduction from the previously proposed 36% tariff, reflecting the strong and enduring alliance between Thailand and the U.S. The decision aims to enhance Thailand’s global competitiveness, attract investor confidence, and foster economic growth.
The United States is Thailand’s largest export market, accounting for 18.3% of its exports in the previous year, valued at $54.96 billion. Major Thai exports to the U.S. include electronics and rubber products, while imports consist largely of crude oil, machinery, and chemicals.
To mitigate the impact on domestic businesses and farmers, the Thai government plans to implement support measures, including subsidies, soft loans, tax incentives, and regulatory reforms. These initiatives aim to build a resilient and adaptive economy amid global challenges. As a result, the finance ministry slightly revised its 2025 economic growth forecast from 2.1% to 2.2%.
The new tariff rate aligns Thailand with regional peers like Indonesia and Vietnam, which secured U.S. tariff rates of 19% and 20%, respectively. This alignment is expected to level the playing field across Southeast Asia, easing earlier fears of steeper levies under President Donald Trump’s trade offensive.
The Thai Chamber of Commerce praised the negotiation team’s efforts, noting that the 19% rate closely matches tariffs imposed on other ASEAN countries such as Indonesia (19%) and Vietnam (20%). The Chamber believes Thailand can remain regionally competitive with tariff rates similar to other ASEAN countries and supports government consideration of additional support measures.
In response to the new tariff, Thailand plans to increase imports of U.S. goods and review rules on imports of U.S. pork. The government aims to balance trade with the U.S. within 10 years and is considering offering more trade concessions to avert higher tariffs.
Overall, the 19% tariff rate is viewed as a positive development for Thailand’s economy, providing a foundation for enhanced trade relations with the United States and positioning the country for sustained economic growth.
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