THAILAND is still negotiating the tariff rate US will impose on Thai products while concerned about the outcome and hoping that the hiked rate of 36%, which was paused for 90 days with a 10% rate applied to allow time for negotiation, will be postponed further on July 9, Naewna newspaper said this morning (July 5).
Deputy Finance Minister Julapun Amornvivat emphasised that the relationship between the two countries is close, and believes that Thailand has no less bargaining power than Vietnam.
US President Donald Trump on Wednesday announced an agreement with Vietnam that he said cuts US tariff on many Vietnamese goods to 20 percent from his previously threatened 46 percent. Many US products would be allowed to enter Vietnam duty free.
Both parties are negotiating at many levels, Chulaphan said, with his personal opinion being that the negotiations may not end 100 percent easily and there may have to be a forum for further discussions.
He is optimistic that the US understands the situation and will postpone the discussion timeframe but at the same time could not say what the final tariff rate would be.
“The Thai side hopes that Thailand will remain at the best level, that is the point before the 10% tariff was imposed, but from following the result of the negotiations of our neighbouring country, Vietnam, the figures that emerged are quite worrying and we have to admit that we are concerned,” he said.
The Thai government is waiting to hear whether there will be good news from talks with US representatives with the Thai team being led by Deputy Prime Minister/Finance Minister Pichai Chunhavajira.
While Thailand does not think the worst-case scenario, that is US slaps 36% tariff on Thai goods, would occur if negotiations fail, the government has allocated 10 billion baht from 115-billion-baht budget to stimulate the economy by helping those in the private sector who would be affected, such as maintaining employment and supporting businesses during transition.
Meanwhile US President Donald Trump on Friday (July 4) said he had signed letters to 12 countries outlining the various tariff levels they would face on their goods imported into the United States, according to a Reuters report published by Korea Times
Trump told reporters aboard Air Force One that the letters would be sent out on Monday.
He declined to say which countries would be in the first batch of letters. Trump had told reporters earlier on Friday that he expected letters to go to most countries by July 9, when higher “reciprocal” tariffs that he paused for 90 days are due to go into effect.
CAPTION:
Top: US President Donald Trump speaks to reporters on board Air Force One, en route from Joint Base Andrews, Md., to Morristown Municipal Airport in Morristown, N.J., on July 4. Photo: AP-Yonhap and published by Korea Times
Insert: Deputy Finance Minister Julapun Amornvivat. Photo: Naewna
Front Page: US President Donald Trump walks on the south lawn of the White House on Apr. 13, 2025 in Washington, DC. File photo: Getty Images via AFP/Tasos Katopodis and published by CNA
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