BANGKOK, August 1, 2025 – The United States has enacted a 19% import tariff on goods from Thailand, Cambodia, and Malaysia, effective immediately. The decision, announced by President Donald Trump, comes as part of a revised trade policy following recent diplomatic negotiations. Thai Deputy Prime Minister and Finance Minister Pichai Chunhavajira addressed the new measure today, framing it as a favorable outcome compared to earlier proposals that had threatened a much steeper 36% duty.

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

In a press conference, Pichai highlighted the reduction as a testament to the strong bilateral relations between Thailand and the U.S., crediting the success to the relentless efforts of “Team Thailand” in securing more favorable terms. “This revised tariff structure allows Thailand to remain competitive in the global market while reinforcing investor confidence,” he stated.

The Deputy Prime Minister acknowledged that while the new rate eases some economic pressure, Thailand must continue adapting to shifting trade dynamics. He pledged government support for local businesses and agricultural sectors impacted by the policy, detailing a suite of relief measures such as financial aid, low-interest loans, subsidies, tax adjustments, and regulatory reforms. “Our goal is to ensure a smooth transition, empowering Thai enterprises to thrive in an evolving economic landscape,” Pichai added.

Thailand, Cambodia Welcome 19% US Tariff After Trump Dealhttps://t.co/Q4rnqf6rXx pic.twitter.com/DU0Jti7bpK

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The announcement underscores Thailand’s urgent need to bolster its economic resilience amid growing geopolitical trade tensions. Pichai emphasized that the country must accelerate structural reforms to build long-term stability and seize emerging opportunities in international markets.

Meanwhile, the reciprocal tariff has drawn mixed reactions across Southeast Asia, with analysts closely monitoring its potential ripple effects on regional trade flows. As the new rates take effect, businesses in Thailand and neighboring nations are bracing for adjustments while cautiously optimistic about the negotiated compromise.

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The White House has yet to release further details on the broader implications of the tariff decision, but the move signals a continued emphasis on recalibrating U.S. trade relations under the Trump administration.

-Thailand News (TN)