Thailand is stepping up its trade negotiations with the United States, offering to scrap tariffs on 90% of American goods, an increase from an earlier proposal of 60%, in an urgent attempt to avoid a 36% import tax threatened by former US President Donald Trump, according to a senior figure advising Thai negotiators.
The country’s third and most comprehensive proposal to date could see the removal of tariffs and non-tariff barriers on approximately 10,000 US products, Chanintr Chalisarapong, vice-chairman of the Thai Chamber of Commerce, told Bloomberg News in an interview on Thursday.
He said he expects the final rate imposed on Thai exports to the US to settle between 18% and 20%, a notable reduction from the 36% level Trump recently proposed.
The new package, set to be presented to US officials during a conference call on Thursday night, could reduce Thailand’s $45.6 billion trade surplus with the United States by as much as 70% within three years. Chanintr added that it could help achieve balanced trade between the two countries within five years.
Thailand’s latest offer goes beyond its July 6 proposal, which aimed to cut tariffs on more than 60% of American products and close the trade gap within seven to eight years.
“I expect our proposal to be solid and practical. The numbers should be satisfactory to the US,” said Chanintr, who has been working closely with Finance Minister Pichai Chunhavajira and his negotiation team in recent days to refine the deal.
“What we’ll be offering is potentially more than Indonesia and Vietnam,” he added. “Since we’re a manufacturing country, we have potential to use a lot more US goods and process them into products that we can export.”
Thailand is among several Southeast Asian nations scrambling to finalise terms with Washington. The United States is Thailand’s largest export market, accounting for roughly 18% of total shipments last year.
A failure to secure a revised tariff deal could lead to a sharp drop in merchandise exports and shave up to one percentage point off the country’s export-driven GDP growth.
Trump has already reached separate agreements with Vietnam and Indonesia, securing 20% and 19% tariffs respectively, though transshipments through these countries will face steeper duties.
Thailand revised its offer swiftly after Trump declared the 36% tariff would come into effect on August 1. Finance Minister Pichai, who had just submitted a second proposal, said the announcement caught him off guard.
Thailand’s new offer may also include a tax exemption for US-based digital service providers operating in or serving Thai consumers, Chanintr revealed.
Additionally, the country could pledge to increase imports of liquefied natural gas, Boeing aircraft, and key American agricultural commodities such as corn, soybeans, and barley, items that hold political weight in US rural states supportive of Trump.
Chanintr noted that cheaper American agricultural imports would help reduce costs in Thailand’s pet food sector, which relies heavily on exports. Lower input costs would also benefit the broader animal feed industry, providing downstream gains for poultry, livestock, and food-processing sectors.
Pichai, who has been advocating for a best-case tariff cap of 10%, is expected to continue discussions with US Trade Representative Jamieson Greer.
Earlier this month, during a meeting in Washington, the Thai minister agreed to reduce import duties on under-supplied US goods and to tighten enforcement against transshipments.
“We’d like for talks to conclude soon so that trade can continue. There’s been too much uncertainty,” said Chanintr. “We’re so close to the finish line.”
Thailand’s broader economy faces headwinds from rising household debt—currently the highest in Southeast Asia—and stagnant domestic consumption.
A successful deal with the US could help restore market confidence, especially amid ongoing political instability following the court-ordered suspension of Prime Minister Paetongtarn Shinawatra over alleged misconduct in a border dispute with Cambodia.
Exports surged roughly 15% in the first five months of the year, largely driven by frontloading during the 90-day window granted for trade talks.
“This is a global trade war, not a bilateral one,” Chanintr warned. “Don’t forget how high the stakes are.”
