Thailand could face an export loss of $7 billion to $8 billion if the Trump administration imposes tariffs to balance trade between the two nations. However, senior officials indicated that Thailand has a strategy in place for the upcoming trade negotiations.
Thai semiconductor exports may face tariffs of 25% from the United States, top commerce ministry official Vuttikrai Leewiraphan said ahead of U.S. President Donald Trump’s planned announcement of new trade barriers.
“Thailand collects tariffs of about 11% higher than the U.S. in agriculture and industrial,” Vuttikrai said.
“So if we are hit with 11% more, we could see losses of about $7 billion to $8 billion.”
Increasing Imports
Thailand wants to avoid U.S. tariffs and has said it would try to increase imports of corn, soybeans, crude and ethane to narrow its trade surplus with the United States. Exports are a key driver for Southeast Asia’s second-largest economy.
The United States has put its deficit with Thailand at $45.6 billion.
Vuttikrai said Thailand is also considering importing U.S. beef and liquor, as well as reducing tariffs on U.S. products.
“Importing (goods) or reducing tariffs alone will not be enough. We will consider every dimension and every way possible,” he said.
Reduction In Trade Surplus
The government will seek help from Thai Airways in buying or leasing aircraft from the United States, he added.
Thailand is aiming to reduce its trade surplus with the United States to $20 billion by importing more U.S. products but has given no timeframe for the reduction.
The United States was Thailand’s largest export market in 2024, accounting for 18.3% of total shipments, or $54.96 billion, of which 20% were shipped by U.S. companies in Thailand, according to Vuttikrai.
Foreign ministry official Sirilak Niyom said Thailand was ready for trade negotiations, and noted that Thai companies had invested $17 billion in the United States across the food, real estate and auto parts sector, and employed 11,000 people.
(With inputs from Reuters)
