Thailand is seeking to avoid tariffs from the U.S. due to a significant trade surplus. Commerce Minister Pichai Naripthaphan emphasized preparedness for negotiations while maintaining confidentiality on strategies. The Prime Minister initiated a study on the scenario’s impact, as the U.S. remains a vital export market for Thailand, accounting for substantial trade relations. Thailand plans to import ethane to narrow the surplus.
Thailand is making efforts to avoid facing tariff measures from the United States, according to Commerce Minister Pichai Naripthaphan. Amid worries about an extensive trade surplus with the U.S., he indicated that Thailand is prepared to negotiate and adjust to ensure a favorable outcome. “Don’t be too alarmed,” the Minister advised, noting that while plans are in place, they cannot be disclosed publicly to protect negotiations.
The minister mentioned that prior to his recent trip to the U.S., Thailand had formulated strategies to mitigate trade surplus concerns. Following this trip, he deemed the discussions productive, highlighting the longstanding relationship between Thailand and the U.S., which allows American investors to have significant stakes in select Thai businesses. However, some sectors, including banking and telecommunications, remain restricted.
Prime Minister Paetongtarn Shinawatra has requested a study on the potential impact of U.S. trade policies on Thailand’s exports, which are vital to the economy. Department reports revealed that Thailand had a notable trade surplus with the U.S. last year, totaling $35.4 billion, with 2024 standing as a key year for exports to the American market, comprising 18.3% of total shipments.
One strategy to lessen the trade gap involves Thailand planning to import 1 million tonnes of ethane in the upcoming second quarter. Trade experts anticipate that the Trump administration may delve into a historic trade law to implement new reciprocal tariffs that could affect countries like Thailand due to the existing trade surplus.
Thailand is actively engaging with the U.S. to prevent potential tariff measures due to its trade surplus, preparing negotiation strategies that prioritize a favorable bilateral relationship. Understanding that U.S. trade policy changes could significantly influence its exports, Thailand aims to mitigate the surplus through increased imports. Maintaining a constructive dialogue is crucial for Thailand to sustain its strong economic ties with the U.S.
Original Source: www.bangkokpost.com
