“Thailand” proposes new proposal to cancel 90% of US goods tariffs, hoping to reduce Trump tariffs to no more than 20% before August 1 deadline
Bloomberg reveals "Thailand" negotiates with US tax, submits new proposal, cancels 90% of US goods tax from the original 60%, covers 10,000 items, expects to exempt digital services tax - increased LNG imports - purchase of Boeing aircraft - import of important US agricultural products
On July 1, 2568 at 16.50:XNUMX p.m., Bloomberg News reported that Thailand is preparing to submit a third round of proposals in trade talks with the United States, proposing to eliminate import tariffs and non-tariff barriers on about 3% of all American products. That's up from more than 60% in the original proposal, in a bid to avoid punitive tariffs that President Donald Trump has threatened to impose.
Dr. Chanin Chalisaraphong, Vice Chairman of the Thai Chamber of Commerce One of the Thai negotiating team's advisors told Bloomberg News that The new proposal covers about 10,000 US products and could reduce Thailand's $46,000 billion trade surplus with the US by 70% within three years and lead to balanced trade within five years.
Dr. Chanin said “I believe our proposal is feasible and will be satisfactory to the United States,” along with stating that Thailand's proposal may be more ambitious than Indonesia and Vietnam's, as Thailand is an industrialized country that can import US products for further use and remanufacture for export.
The US-imposed import tariffs on Thailand are expected to be 18-20%, down from the 36% Trump recently announced, and are set to take effect on August 1, 2568.
The new proposal, which is set to be submitted via a teleconference with the US on Thursday, could include a tax exemption for US digital services provided in Thailand, increased imports of liquefied natural gas (LNG) from the US, purchases of Boeing aircraft and imports of key US agricultural products such as corn, soybeans and barley, cash crops popular in Trump's rural base states.
Cheap US agricultural products are expected to help lower costs for Thailand's animal feed and pet food industries, which export a large amount, and will also help improve the efficiency of the domestic livestock and food processing industries.
Mr. Pichai Chunhavajira, Deputy Prime Minister and Minister of Finance Which has said that it hopes for the best tariff rate of 10%, is preparing to continue negotiations with US Trade Representative Jamieson Greer. Previously, Thailand agreed to reduce import tariffs on US goods that are not in sufficient quantity in the country and to increase controls to prevent tax evasion through transshipment.
“We hope that the negotiations will be concluded soon so that trade between us can continue. There is too much uncertainty,” Chanin said, expressing confidence that Thailand could reach an agreement before August 1: “We are very close to the finish line.”
The Thai economy is also under pressure from the highest household debt levels in ASEAN and weak domestic consumption. A friendly deal could help ease investors' growing concerns over political turmoil after a court suspended Prime Minister Paethongtarn Shinawatra over allegations she was unethical in her handling of a border dispute with Cambodia.
In the first five months of this year, Thai exports expanded by about 5%, partly due to an acceleration of exports during the 15-day tax holiday to pave the way for negotiations.
“This is not just a trade war between two countries, it’s a global trade war,” Chanin said. “Don’t forget that the outcome of this is very high-stakes.”
refer : www.bloomberg.com
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