Thailand is accelerating efforts to finalize a trade agreement with the United States ahead of the July 9 deadline when a 36% tariff could be imposed on Thai imports. The final round of negotiations is set to take place in the coming days, with Finance Minister Pichai Chunhavajira scheduled to travel to Washington to lead the talks.
Pichai addressed speculation regarding an 18% proposed tariff rate, stating that the figure was based on a scenario model from the Bank of Thailand and not a confirmed outcome. The clarification followed widespread reports and growing public interest in the ongoing trade discussions between the two governments.
Thailand submits official proposal
Wuttikrai Leeviraphan, Thailand’s Permanent Secretary for Commerce, confirmed that an official proposal was submitted to Washington on June 20 following earlier technical meetings. The offer includes terms that could reduce the proposed tariff to 10%, matching the minimum threshold announced in April under President Trump’s reciprocal trade framework.
The Trump administration initially set broad tariffs on all U.S. trade partners effective April 2, with a 90-day negotiation window. If no deal is reached by July 8, trading partners may face steep increases starting the following day. Thailand, a key exporter in Southeast Asia, is pushing to avoid such penalties through timely engagement and concessions.
US leaves room for flexibility
White House Press Secretary Karoline Leavitt indicated on June 26 that the tariff deadlines could be extended at the president’s discretion. She explained that President Trump holds the authority to adjust or delay tariffs if it serves U.S. economic interests.
Commerce Secretary Howard Lutnick added that the administration is seeking to secure agreements with 10 major trading nations in the coming weeks. Thailand has been identified as a top priority in this strategy, especially after the U.S. reached a deal with China in Geneva. The U.S.-China agreement included trade adjustments and a rare earth element supply arrangement that could guide similar agreements with other countries.
EU faces pressure over pending agreement
The European Union is also under pressure to close a trade deal as Trump threatens to impose a 50% tariff on EU exports beginning July 9. European Commission President Ursula von der Leyen stated that the EU is reviewing the latest U.S. proposal and remains open to a deal, while preparing for all possible outcomes.
It is still an area of negotiation because of the continued shuffling of global trade policy under the current administration of bilateral agreements and use of strategic tariffs.
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