Thailand may expand zero-tariff access for more American products in an effort to avoid new U.S. tariffs on its exports, Finance Minister Pichai Chunhavajira said.
The United States is considering a 36% tariff on Thai goods, and Thailand is working to reach a deal before the August 1 deadline set by President Donald Trump.
The government has already pledged to remove import duties on 90% of American goods and lift certain non-tariff barriers. It has also offered to buy more U.S. agricultural and energy products to help narrow its trade surplus, which stood at US$46 billion last year.
Talks between the two countries include possible regulatory changes to allow U.S. imports of left-hand drive vehicles. Thailand may also remove duties on items already covered by free-trade agreements with other countries.
Thailand earlier cut tariffs on goods like longan and tilapia fish from other partners and may offer the same for U.S. products.
The United States remains Thailand’s largest export market, accounting for about 18% of outbound shipments in 2024.
The threat of new tariffs has caused Thai exports to the U.S. to rise by 15% in the first five months of 2025 as exporters try to ship goods before duties increase.
U.S. negotiators are also pushing for terms beyond trade, including political issues. Pichai warned that some of these demands could cause a backlash at home and said any deal must support Thailand’s long-term interests.
On local content rules, the minister said the impact would be limited because most Thai exports come from well-established industries.
The U.S. has already raised tariffs on some countries suspected of rerouting Chinese goods, including Vietnam.
If Thailand cannot reach an agreement, the country could lose up to 200 billion baht, or about US$6.14 billion, in export income this year. Growth could also drop by up to one percentage point.
