# Unresolved U.S. Trade Talks Intensify Ahead of August 1 Deadline – Implications for Thailand

- Link: https://www.thailand-business-news.com/economics/235836-unresolved-u-s-trade-talks-intensify-ahead-of-august-1-deadline-implications-for-thailand
- Published: 2025-07-28T11:53:33+07:00
- Author: Economic Intelligence Center Siam Commercial Bank

**SCB EIC emphasizes the importance of proactive measures to mitigate the impact
of U.S. retaliatory tariffs on Thailand’s economy. Policymakers should prioritize
fostering trade partnerships, diversifying export markets, and implementing targeted
relief programs for vulnerable industries, particularly agriculture.**

## Higher U.S. Tariffs Threaten Thai Exports

SCB EIC warns that U.S. retaliatory tariffs on Thai exports, potentially higher 
than those on competitors, pose significant risks. Key Thai export sectors such 
as electronics and electrical appliances may lose market share to ASEAN, Japan, 
and South Korea. Thailand also faces the risk of circumvention tariffs, increasing
trade costs and requiring strict origin verification, similar to Vietnam’s experience.

ADVERTISEMENT

## Impact on Agriculture and Domestic Demand

If Thailand opens its market unconditionally to U.S. products, the agricultural 
and livestock sectors—especially pork, chicken, and corn—would be vulnerable due
to higher production costs. While consumers might benefit from lower prices, food
security and small farmers could suffer. Meanwhile, domestic demand might weaken
further in late 2024 as investment slows and consumption declines, partly due to
tariff uncertainties and reduced foreign investment.

## Policy Response and Government Strategy

The MPC is likely to cut policy rates twice more this year amid the worsening outlook.
However, failed U.S. negotiations could increase economic risks, potentially prompting
additional cuts. The government must carefully balance tariff negotiations, considering
selective market openings and providing support to affected businesses through liquidity
aid, diversification, and competitiveness enhancement.

### Related**Posts**

###  󠀁[Thailand Faces a New Economic Test Nearly 30 Years After Its IMF Rescue](https://www.thailand-business-news.com/economics/334123-thailand-faces-a-new-economic-test-nearly-30-years-after-its-imf-rescue)󠁿

###  󠀁[IMF says AI investment is giving Thailand’s technology supply chain a boost](https://www.thailand-business-news.com/economics/333785-imf-says-ai-investment-is-sustaining-global-growth-giving-thailands-technology-supply-chain-a-boost)󠁿

###  󠀁[Singapore Pillar Two Registration: Steps Multinational Groups Should Take](https://www.thailand-business-news.com/asean/329970-singapore-pillar-two-registration-what-multinational-groups-need-to-do)󠁿

###  󠀁[Bank of Thailand Warns Repeated Shocks Are Weakening Thailand’s Economic Resilience](https://www.thailand-business-news.com/economics/332788-bank-of-thailand-warns-repeated-shocks-are-weakening-thailands-economic-resilience)󠁿

[Source link ](https://www.scbeic.com/en/detail/product/9848?rand=55232)