BANGKOK — Thailand’s top business alliance has urged the government to eliminate import taxes on most US-made goods in a strategic move to persuade the Trump administration to reconsider its steep 36% tariff on Thai exports. The proposal, aimed at easing trade tensions, was presented during a high-level meeting with Finance Minister Pichai Chunhavajira on Wednesday.

U.S. Slaps 36% Tariff on Thai Imports in Major Trade Policy Shift

The Joint Standing Committee on Commerce, Industry and Banking (JSCCIB), led by Thai Chamber of Commerce President Pote Aramwattananont, spent three hours discussing the tariff standoff ahead of a critical third round of negotiations before the August 1 deadline. Pote suggested that Thailand adopt a free trade agreement (FTA)-like approach by exempting US imports from duties, though the measure may not cover all products. The goal, he said, is to mitigate the impact of Washington’s retaliatory tariffs and help Thai goods remain competitive against rivals like Vietnam.

Finance Minister Pichai confirmed that Thailand’s revised proposal, submitted to the US on July 6, has yet to receive a response. He expressed hope for further negotiations and said he would review the JSCCIB’s recommendations.

Thailand faces a steep 36% US tariff due to its failure to address Chinese transshipments through its borders. While Vietnam avoided similar penalties by offering a dual-tariff model, Thailand’s neutral stance is seen as non-cooperation. Trump may reconsider if Thailand proposes… pic.twitter.com/pz0XJ7NCFY

— Bangkok Post (@BangkokPostNews) July 10, 2025

Separately, the Thai National Shippers’ Council submitted additional proposals, including a zero-tariff rate on select US imports, extended Board of Investment (BOI) incentives for foreign investors, and increased energy imports from the US. The private sector’s push reflects growing concerns over Thailand’s export competitiveness as the tariff dispute escalates.

Thailand to Negotiate with U.S. Over Trump’s New Tariffs, Says PM Paetongtarn

With the deadline looming, Thai officials and business leaders are racing to find a compromise that could avert further economic strain. The Finance Ministry is expected to finalize its strategy in the coming days before engaging in what could be a decisive round of talks with US trade representatives.

-Thailand News (TN)