Thailand is actively working to finalize a trade agreement with the United States before July 9 to avoid a potential 36% tariff on imports. The Finance Minister will visit Washington for final negotiations.
Final Negotiations Before Deadline
Finance Minister Pichai Chunhavajira denied reports of an 18% tariff, stating that this figure is used in economic modeling by the Bank of Thailand and is not a settled rate in negotiations. The negotiations are scheduled for next week.
Washington's Flexibility in Talks
US President Donald Trump previously announced broad tariffs against nearly all trading partners. While the base level was reduced to 10%, other rates will remain in place for 90 days for potential negotiations. White House Press Secretary Karoline Leavitt confirmed that the deadlines are not strict and could be extended at the president’s discretion. Commerce Secretary Howard Lutnick stated that the administration aims to seal major trade agreements with 10 leading countries within the next few weeks.
EU Braces for Possible Tariffs
Meanwhile, the European Union is also under pressure to conclude a trade deal as Trump has threatened a 50% tariff on EU goods starting July 9. European Commission President Ursula von der Leyen confirmed that the EU is analyzing the latest US proposal and is preparing for potential outcomes, including protecting its interests if negotiations do not yield favorable results.
Thailand's diplomatic efforts alongside the US amidst threatening tariffs showcase the significance of securing trade agreements in a shifting global economy. Countries that fail to reach a compromise risk losing preferential access to the world’s largest economy.
