Thailand Nears U.S. Trade Deal, Tariffs Expected Below 36%

Thailand’s trade negotiations with the United States are expected to conclude before the August 1 deadline, with tariffs likely to come in lower than the previously feared 36%, Finance Minister Pichai Chunhavajira said Tuesday.

The United States is Thailand’s largest export destination, accounting for 18.3% of total exports in 2024, valued at $54.96 billion. Washington reported a $45.6 billion trade deficit with Thailand, prompting tariff discussions earlier this year.

Pichai confirmed Thailand’s readiness to finalize the deal, stating that proposals remain unchanged but include significant concessions, such as zero tariffs on several U.S. products. He expressed optimism that Washington would respond favorably, saying, “We’re definitely ready, and now we’ll see how the U.S. decides.”

Tariff announcements are expected on August 1 or 2. Pichai noted that rates will likely align with regional peers like Vietnam and Indonesia, currently facing U.S. tariffs of 20% and 19%, respectively—well below the 36% initially threatened in April.

Thailand’s concessions and ongoing dialogue signal progress toward a mutually beneficial trade framework, potentially easing pressure on key export sectors and supporting economic stability amid global trade tensions.