Thailand is making a last-ditch effort to avoid a steep 36% export tariff threatened by the Trump administration, offering expanded access to its markets for American farm and industrial products.
The Thai government is also pledging increased purchases of US energy and Boeing aircraft in a bid to ease tensions and reduce its trade surplus.
In an interview with Bloomberg News late Sunday, Finance Minister Pichai Chunhavajira revealed that Thailand’s latest proposal aims to cut its $46 billion trade surplus with the United States by 70% within five years, achieving trade balance in seven to eight years.
That target is faster than a previous offer to close the gap within a decade.
Pichai said the revised proposal is expected to be submitted before Wednesday, the final day of a 90-day tariff freeze announced by President Donald Trump.
If accepted, Thailand would immediately begin removing import tariffs and non-tariff barriers on most affected US goods, with more gradual easing for others.
The offer comes after high-level talks last Thursday between Pichai, US Trade Representative Jamieson Greer, and Deputy Treasury Secretary Michael Faulkender, marking the first ministerial-level negotiations on the tariff issue.
Pichai noted that many of the American products slated for increased access are in short supply locally and unlikely to harm domestic producers.
“What we’re offering is a mutually beneficial proposal,” said Pichai. “The US can trade more with us, and we gain the opportunity to streamline our systems and reduce red tape.”
Thailand is one of several countries racing to strike a deal with Washington and avert heavy duties. Failure to reach an agreement with its largest export market could lead to a significant drop in shipments and shave up to one percentage point off Thailand’s economic growth forecast.
Neighbouring Vietnam has already reached an agreement, with the Trump administration imposing a 20% tariff on its exports and a 40% rate on goods labeled as transshipped.
Thailand is now pushing for a best-case tariff rate of 10%, though Pichai said a rate between 10% and 20% would still be acceptable. “The worst outcome,” he said, “would be getting the least favourable deal in the region.”
As part of its revised offer, Thailand has also stepped up commitments to purchase US liquefied natural gas and Boeing jets.
Petrochemical giants SCG Chemicals Plc and PTT Global Chemical Plc have pledged to import more US ethane, while PTT is considering a deal to buy 2 million tonnes of LNG annually from the Alaska gas project over a 20-year term. State-controlled firms are also exploring co-development opportunities with the US.
Meanwhile, national carrier Thai Airways has expressed interest in acquiring up to 80 Boeing aircraft in the coming years, a move that could significantly narrow the trade gap.
Securing lower US tariffs is seen as critical to protecting Thailand’s export-dependent economy, already under strain from Southeast Asia’s highest household debt and weak domestic consumption.
A successful deal would also help restore investor confidence amid ongoing political uncertainty, including the court-ordered suspension of Prime Minister Paetongtarn Shinawatra over an ethics investigation linked to a border dispute with Cambodia.
Thailand’s exports rose around 15% in the first five months of the year, driven largely by businesses front-loading orders ahead of the potential tariff hike.
