Thailand is racing against the clock to defuse a trade crisis after Washington dropped a bombshell 36% tariff on Thai exports, forcing Bangkok to scramble for last-minute concessions and emergency bailouts before the deadline hits.
The United States has given Thailand until August 1 to finalise trade proposals under its tough new Reciprocal Tariff policy. The Thai government confirmed it is deploying a two-pronged strategy to keep exports flowing and stave off economic pain.
First, Thailand submitted a revised proposal to Washington on July 6, aiming for a 70% reduction in the country’s trade surplus with the US by 2030 and full balance by 2032.
The submission also promises tariff reductions, fewer non-tariff barriers and the easing of import restrictions.
A Government House source revealed that former Prime Minister Thaksin Shinawatra convened a high-level policy meeting yesterday, July 10, to finalise Thailand’s stance. His involvement underscores the political urgency as the country scrambles to avoid a tariff that could devastate exporters.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira will lead a “Team Thailand” session today, July 11, to consolidate feedback from businesses and approve targeted relief.
“We need to prepare for every possible outcome—good or bad,” Pichai said, adding that the economic stakes are enormous, with the US accounting for 18% of Thailand’s exports.
Supavud Saicheua, policy adviser to the prime minister, warned that Washington is using Vietnam’s trade concessions as a benchmark.
“The US wants to recoup as much of its past trade deficit as possible,” he said. “If Thailand wants to export, it may have to manufacture in the US instead.”
Among US demands are the removal of agricultural quotas, faster import licensing, and the lifting of food safety restrictions. Officials also fear increased scrutiny over trans-shipment, where goods from restricted countries are rerouted through Thai ports.
Meanwhile, a domestic safety net is taking shape. The Finance Ministry has earmarked 47 billion baht from the stimulus fund and plans to allocate a further 11.1 billion baht for export relief. A 100 billion baht soft loan facility will be launched to help exporters, farmers, and manufacturers hit by cheaper imports, reported The Nation.
Commerce Minister Jatuporn Buruspat confirmed discussions on a 10 billion baht compensation fund.
“We need comprehensive data—who is affected, which products, and the extent of the damage,” he said.
With the clock ticking, all eyes are on whether Thailand can strike a deal and avoid an economic hammer blow.
The story US deadline looms: Thailand races to avert tariff pain as seen on Thaiger News.
