Finance Minister Pichai Chunhavajira says negotiations with the US will take time; Thailand plans to balance trade over the next decade
Bangkok, April 9 – Thailand has announced a set of strategic measures to counter the newly imposed 36% tariff by the United States, one of the highest rates in Southeast Asia under US President Donald Trump’s administration.
Speaking on Tuesday, Finance Minister Pichai Chunhavajira, who will lead Thailand’s negotiation team, said the government will increase imports from the US, lower tariffs on some American products, and address non-tariff trade barriers to ease tensions and stabilize bilateral trade relations.
Talks with the US Confirmed, but No Rush to Travel
Pichai stated that Thailand is in “no rush” to travel to the United States for immediate negotiations. “Our proposals need careful planning and preparation. We are focused on building a sustainable trade roadmap,” he said.
Prime Minister Paetongtarn Shinawatra also confirmed that a meeting with the United States Trade Representative (USTR) has been scheduled. However, no detailed timeline was revealed.
Key Changes in Imports and Tariffs
As part of the counter-strategy, Thailand plans to increase imports of various US goods such as:
- Corn
- Soybeans
- Crude oil
- Ethane
- LNG (Liquefied Natural Gas)
- Automobiles and electronics
- Aircraft
Additionally, the Thai government will review rules on US pork imports and lower taxes on selected American products to encourage balanced trade and reduce the risk of future penalties.
Relief Measures for Exporters Amid Economic Concerns
The Prime Minister urged Thai exporters to diversify and explore new markets to minimize dependency on US trade. Relief packages are being prepared to support businesses affected by the tariffs, which officials fear could reduce GDP growth by 1 percentage point this year.
Thailand initially forecasted 3% economic growth in 2025, following 2.5% growth in 2024, but the new tariffs could challenge that goal. The country has a significant trade surplus of $35.4 billion with the US, while Washington claims a $45.6 billion deficit with Thailand.
Stock Market Reacts to Tariff Announcement
On the first trading day since the tariff news, Thailand’s benchmark stock index plunged by 6.1%. In response, the Stock Exchange of Thailand (SET) implemented temporary circuit breakers:
- Lowered stock floor and ceiling limits to 15% (from 30%)
- Banned short selling to curb volatility
Thailand now aims to balance trade with the US within 10 years, signaling a longer-term commitment to stable economic relations despite short-term challenges.
