Thailand's finance minister: A backup plan is being prepared in response to the U.S. tariffs.

Thailand's finance minister: A backup plan is being prepared in response to the U.S. tariffs.

Thailand's Finance Minister, Pichai Chunhavajira, has outlined a backup plan in response to the potential U.S. tariffs that could significantly impact the country's exports. The move comes ahead of a July 9 deadline, when a 90-day pause capping U.S. tariffs at 10% for most countries expires. If no agreement is reached, Thai exports could face a 36% levy, which could severely harm the Thai economy [2].

The revised trade proposal, submitted by Thailand, offers zero tariffs on a substantial number of U.S. imports. This proposal aims to balance trade with the United States within a decade, ahead of previous projections. Thailand's main exports to the U.S. last year included computers, teleprinters, telephone sets, and rubber products. Top imports from the U.S. were crude oil, machinery and parts, and chemicals [2].

Thailand's private sector has expressed support for the revised proposals, expecting a mutually beneficial outcome. The Thai Chamber of Commerce has stated that the proposal includes increased purchases of energy and Boeing jets, as well as greater market access for U.S. products. The chamber expects the U.S. to accept Thailand's proposals, leading to a fair tariff rate that will not disadvantage Thai businesses [4].

In response to the potential tariff increases, the Thai government is preparing business relief measures. The Commerce Ministry is planning to deliver these measures via a relief fund aimed at supporting businesses affected by the potential tariff increases. The government has reserved 10 billion baht from its economic stimulus package of 115 billion baht for this purpose [4].

Thailand's Finance Minister has warned that Thailand’s economy may grow just over 1% this year due to the tariff impact. The Bank of Thailand last month projected 2.3% growth for 2025, following 2.5% growth last year [2].

Thailand continues to face challenges including weak consumption, high household debt, declining tourism, and ongoing trade uncertainty. The country is making a final push to avoid steep U.S. export tariffs by offering significantly greater market access to American goods and stepping up purchases of U.S. energy and Boeing aircraft [5].

References:
[1] https://www.hindustantimes.com/world-news/thailands-trade-proposal-to-the-us-includes-zero-tariffs-on-some-imports-says-finance-minister-101751873098221.html
[2] https://profit.pakistantoday.com.pk/2025/07/07/thailand-offers-zero-tariffs-on-u-s-goods-to-avoid-trade-penalties/
[3] https://finance.yahoo.com/news/live/trump-tariffs-live-updates-trump-tells-japan-south-korea-hes-imposing-25-tariffs-beginning-letter-barrage-200619254.html
[4] https://www.bangkokpost.com/business/general/3064922/thai-businesses-come-out-in-support-of-us-tariff-deal
[5] https://caliber.az/en/post/thailand-races-to-avert-us-tariffs-with-sweeping-trade-offer