# Thailand to grant additional trade concessions to the US to avoid a 36% tariff

- Link: https://www.thailand-business-news.com/trade/232403-thailand-to-grant-additional-trade-concessions-to-the-us-to-avoid-a-36-tariff
- Published: 2025-07-08T03:50:32+07:00
- Author: Arun Upadhyaya

**The White House had told trade partners to make a deal with the U.S. or face increased
tariffs by July 9, but now that date is being pushed back.**

---

## Key Points

 * Thailand is racing to finalize a trade agreement with the U.S. to prevent steep
   tariff hikes, which could reduce export volumes and potentially impact economic
   growth by 1%. Neighboring Vietnam recently secured its deal after the U.S. announced
   significant tariffs on foreign goods.
 * Thailand aims for a 10% tariff rate from the U.S., with 10-20% considered manageable.
   A worst-case scenario would mean worse terms than regional competitors. To bolster
   its negotiating position, Thailand plans increased imports of U.S. products, 
   including LNG and Boeing aircraft.
 * Lower U.S. tariffs are crucial for Thailand’s trade-dependent economy, already
   facing high household debt and sluggish consumption. A favorable deal could also
   restore investor confidence after political instability due to the suspension
   of Prime Minister Paetongtarn Shinawatra over misconduct allegations.

Bangkok, Thailand – In a bid to avert a looming 36% tariff on Thai goods, Thailand
has initiated talks with the United States to offer additional trade concessions.
This development comes as the US prepares to impose these tariffs in response to
concerns over Thailand’s trade practices, particularly regarding intellectual property
rights and market access.

ADVERTISEMENT

Efforts to reach an agreement intensified ahead of the anticipated tariff rollout,
which could have dire economic implications for Thai exporters, especially in the
automotive and electronics sectors. The Thai government has expressed its commitment
to enhancing bilateral trade relations, emphasizing that the proposed concessions
aim to create a more equitable trade environment. “We believe that constructive 
dialogue can lead to a mutually beneficial outcome,” stated Thailand’s Minister 
of Commerce, Jurin Laksanawisit, in a recent press briefing.

Experts warn that the tariffs, which could take effect as early as next month, would
not only increase prices for American consumers but also significantly hamper Thailand’s
key export-driven economy. In 2022, the US was Thailand’s second-largest trading
partner, with bilateral trade valued at over $30 billion. According to a report 
from the US Trade Representative, continued tariffs could result in a substantial
loss of jobs and economic stability in Thailand.

### Related**Posts**

###  󠀁[What Would an ASEAN-Canada Free Trade Agreement Mean for Foreign Investors?](https://www.thailand-business-news.com/asean/331504-what-would-an-asean-canada-free-trade-agreement-mean-for-foreign-investors)󠁿

###  󠀁[The Changing Map of Growth: Why East Asia and the RCEP Are More Important Than Ever](https://www.thailand-business-news.com/opinion/328474-the-changing-map-of-growth-why-east-asia-and-the-rcep-are-more-important-than-ever)󠁿

###  󠀁[China and ASEAN trade deal speeds up business exchanges](https://www.thailand-business-news.com/asean/329080-china-and-asean-trade-deal-speeds-up-business-exchanges)󠁿

###  󠀁[Thailand Business News — Morning Briefing : Thailand & Asia | 17 September 2026](https://www.thailand-business-news.com/finance/329176-thailand-business-news-morning-briefing-thailand-asia-17-september-2026)󠁿

As negotiations unfold, both nations are hopeful that a compromise can be reached,
allowing Thai goods to remain competitive in the US market while addressing American
concerns. The outcome of these discussions will be closely monitored as they could
set a precedent for future trade relations in the region.