Statement of the Prime Minister: Thailands Stance on U.S. Trade Policy and Reciprocal Tariffs

Statement of the Prime Minister: Thailand’s Stance on U.S. Trade Policy

April 3, 2025

The Thai government acknowledges and understands the necessity for the United States to rebalance its trade with numerous trading partners through the Reciprocal Trade and Tariffs policy. This policy has impacted various countries that are trade partners of the U.S. Notably, the framework and strategies of President Trump are dynamic and markedly different from those of previous administrations.

Most recently, on April 3, 2025, at 4:00 a.m. (Thai time), President Trump announced a new policy during the Liberation Day event. He declared a minimum 10% tariff increase on imports from all countries, with higher rates for nations that maintain a trade surplus with the U.S. or are perceived by the U.S. as taking advantage through import tariffs, non-tariff barriers, and other fees. Each country will face varying rates, calculated at half the rate the U.S. estimates its goods are subjected to by that country. For Thailand, the U.S. has set a reciprocal import tariff rate of 36%, effective from April 9, 2025 onward.

This announcement of increased import tariffs by the U.S. government will inevitably affect all trading partners, particularly the purchasing power of U.S. consumers, who may struggle to cope with rapidly rising and significantly higher goods prices. Therefore, in the long term, Thai exporters should seek new, high-potential markets to reduce the risks of relying on a single market. The Thai government recognizes the importance of this issue and has prepared measures to mitigate and alleviate the potential impacts on Thai exporters who depend heavily on the U.S. market.

The government wishes to inform the public that Thailand has signaled its readiness to engage in discussions with the U.S. government at the earliest opportunity to rebalance trade fairly for both sides, minimizing the impact on relevant sectors. A U.S. Trade Policy Task Force, established on January 6, 2025—prior to President Trump’s official inauguration—has been tasked with working alongside government and private sectors. Over the past three months, this task force has closely and comprehensively monitored and assessed developments to prepare a “proposal to rebalance trade with the U.S.” that is substantive enough to incentivize the U.S. to enter negotiations with Thailand. This proposal aims to minimize the impact on farmers, consumers, and businesses in related sectors. Simultaneously, Thailand may seize this opportunity to restructure production, reduce costs, and enhance long-term competitiveness in certain industries.

Thailand is firmly committed to establishing long-term trade stability and balance with the United States. It possesses sufficient potential to be part of the “Friend Shoring” group of allied nations for investment, fostering collaboration in high-potential industries that benefit both countries for sustainable global market growth. For instance, in the agriculture and food sector, the U.S. produces numerous agricultural goods that Thailand could import, process, and export to global markets. Similarly, in advanced technology industries, Thailand is a key global producer of Hard Disk Drives, essential for the development of the U.S.’s Data Center and AI industries.