US Pressures Thailand to Resolve Trade Concerns as Tariff Talks Stall

Talks between the US and Thailand regarding the Trump administration’s plan to impose a 36% tariff have been postponed. Washington requested Thailand address certain trade issues, but no new dates for negotiations have been set. Prime Minister Paetongtarn Shinawatra stated that the talks would involve mutual concessions.

The US wants Thailand to prevent misuse of certificates of origin by countries facing higher tariffs and address concerns over currency manipulation. Thailand’s trade surplus with the US has increased significantly, leading to higher import levies. Recently, the US imposed duties up to 3,521% on solar imports from Southeast Asia, including Thailand, due to unfair subsidies. Commerce Minister Pichai Naripthaphan expressed optimism for a favorable outcome, given the strong bilateral relations. Thailand’s government warned that the tariffs could reduce growth by at least one percentage point if not negotiated down, and has offered to increase imports of US commodities to secure a deal.

The United States is urging Thailand to address longstanding trade barriers, including agricultural tariffs and intellectual property protections, as negotiations over a potential free trade agreement (FTA) face delays. The push comes amid growing frustration from American businesses over what they describe as unfair market restrictions in the Southeast Asian nation.

Senior US trade officials have raised concerns about Thailand’s high import duties on key American exports, such as pork, dairy, and machinery, as well as lax enforcement of copyright and patent laws. Talks on reducing tariffs, initially expected to advance this year, have been postponed indefinitely, according to sources familiar with the discussions. A US Trade Representative (USTR) spokesperson stated, “We continue to engage with Thailand to resolve these issues, which are critical for a level playing field.”

Thailand, a major regional trade hub, has sought to strengthen economic ties with the US but faces domestic pressure to protect local industries. Analysts suggest the delays reflect broader geopolitical tensions, as Thailand deepens trade relations with China. “The US wants assurances on market access, but Thailand is walking a tightrope between its largest trading partners,” said trade expert Somchai Phatharathananunth of Chulalongkorn University.

With no resumption date set for formal talks, businesses on both sides await clarity. The outcome could shape future US-Thailand trade dynamics amid shifting global supply chains.

Sources: US Trade Representative statement, Reuters, Bangkok Post