Thailand Plans Trade Talks with U.S. to Avoid 36% Tariffs

Thailand is set to submit a formal trade proposal to the United States this week in an effort to avoid a threatened 36% tariff on its exports under U.S. "Liberation Day" measures. The initial round of negotiations will be conducted virtually, with the possibility of in-person meetings later, according to Thailand's Finance Minister Pichai Chunhavajira. The proposal aims to address the significant U.S.-Thailand trade imbalance, improve market access for American exports, and includes Thai investment plans to create jobs in the U.S. Thailand faces economic pressure as its 2025 growth forecast has been downgraded partly due to the uncertainty surrounding reciprocal tariffs. The U.S. goods trade deficit with Thailand increased to $45.6 billion in 2024, highlighting the stakes involved in the negotiations. Political tensions earlier this year, including the brief detention of an American academic on royal defamation charges, had raised concerns about potential delays in the talks, but the case was later dropped.