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Thailand Rushes to Finalize Trade Deal with US, Easing Tariff Worries

by admin477351

Thailand is intensifying efforts to negotiate a reciprocal trade agreement with the United States, aiming to shield its exporters from potential tariff increases. The discussions are centered around the Agreement on Reciprocal Trade (ART), with Thai officials stating that while no firm deadline has been established, talks are ongoing.

Prime Minister Anutin Charnvirakul is expected to engage in discussions with U.S. President Donald Trump regarding the trade negotiations and existing tariff conditions. Currently, Thailand is subjected to a 12.5% tariff under a Section 301 measure due to concerns over imports made with forced labor. Additionally, a U.S. investigation initiated in March 2026 into structural excess production capacity could lead to further duties on Thai goods.

In response, Thai authorities have submitted data to challenge U.S. assessments, arguing that production capacities in key industries are greater than previously estimated. They are advocating for an updated evaluation from Washington, seeking tariff conditions similar to those granted to regional competitors like Malaysia and Indonesia.

An ART could potentially enhance market access and provide stability for Thai exporters, although the specific tariff terms remain under negotiation. The agreement would also aim to address U.S. concerns about trade barriers, investment, and market access in Thailand. Any finalized deal would still require ratification through Thailand’s domestic legal processes before it can be implemented.

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