Thai commerce minister Suphajee Suthumpun says Thailand to continue trade negotiations with US after ruling

Thai commerce minister Suphajee Suthumpun says Thailand to continue trade negotiations with US after ruling

Thai Commerce Minister Affirms Continued Trade Negotiations with U.S. Amid Tariff Uncertainties

Thai Commerce Minister Suphajee Suthumpun has stated that Thailand will continue negotiations with the United States to finalize a reciprocal tariff agreement, aiming for a conclusion by July 2026. The talks proceed amid shifting U.S. tariff policies following a Supreme Court ruling that invalidated many of President Donald Trump's broad levies under the International Emergency Economic Powers Act (IEEPA) according to reports. Trump has since announced a new 10% tariff on all imports for 150 days, raising concerns about further adjustments and market instability.

Thailand currently faces a baseline U.S. tariff rate of 19%, which analysts suggest may be replaced by the new 10% rate in some cases, though broader application to goods with lower existing tariffs remains possible according to market analysis. Suphajee emphasized that negotiations involve unresolved issues, including agricultural goods and non-tariff measures (NTMs), requiring technical and policy-level approvals. Recent discussions between Thai and U.S. officials on February 12 focused on aligning timelines with Thailand's post-election government formation process.

The U.S. has indicated flexibility for Thailand to submit product exemptions from reciprocal tariffs ahead of finalizing the agreement, though outcomes depend on overall negotiations as reported. Thailand remains on "equal footing" with other ASEAN nations, according to Suphajee, despite Indonesia and Vietnam securing preliminary deals. Indonesia recently signed $38.4 billion in trade agreements with the U.S., while Vietnam committed to purchasing 90 Boeing aircraft worth $30 billion according to trade data.

Analysts note that the Supreme Court ruling reduced the U.S. trade-weighted average tariff from 15.4% to 8.3%, offering temporary relief but leaving high rates for major partners like China and India according to economic analysis. Thailand's negotiations prioritize balancing tariff reductions with safeguards for domestic industries, with Suphajee highlighting opportunities to align regulatory standards with international practices as stated.

As the U.S. recalibrates its trade strategy, Thailand's focus remains on securing a mutually beneficial agreement while mitigating risks from potential further tariff adjustments according to trade experts.