Thailand to negotiate with US on tariffs

Thailand will negotiate with the U.S. on tariffs, Prime Minister Paetongtarn Shinawatra said on Thursday, just hours after U.S. President Donald Trump announced comprehensive tariffs on imports from many countries.

According to the Thai PM, the government has a strong plan to ensure that this year's GDP growth target will not be affected by the U.S. tariff policy.

Meanwhile, Thai Deputy Finance Minister Julapun Amornvivat said the government was not surprised although a rate of 36% was higher than expected.

Thailand’s trade surplus with the U.S. totalled $45 billion last year, according to the Office of the U.S. Trade Representative.

Thailand has committed to step up imports of energy and food products to cut its trade surplus with the U.S.

The U.S. is Thailand's largest export market with electronics, machinery and agricultural products topping the list of goods.

Thai Chamber of Commerce President Poj Aramwattananont said the 36% tariff was higher than Thai businesses had previously expected, urging the government to negotiate quickly. Poj noted that businesses did not expect the U.S. to impose tariffs of more than 25% on Thai goods.

The official said that Thai businesses should not worry because other countries are also facing higher tariffs. In addition, the U.S. will also suffer some impact from this as they still can’t produce to replace the imports fast enough.

Thailand is on the list of 15 countries that could be affected by Trump’s tariff policy. The average U.S. tariff on Thai imports is 2% while Thailand levies an average tariff of 8% on U.S. products.