BANGKOK — Thailand will not agree to eliminate tariffs on all U.S. goods as part of ongoing trade negotiations, citing potential harm to domestic industries and strategic sectors. Deputy Finance Minister Paopoom Rojanasakul made the statement ahead of a high-level meeting between Thailand’s trade delegation and the Office of the United States Trade Representative (USTR) scheduled for Thursday, July 18, 2025.
Speaking to the press, Mr. Paopoom emphasized the need for a balanced approach that protects local producers, including farmers and small businesses, while still supporting Thailand’s export ambitions. “The winner in negotiations is not the one who gets the lowest tariff, but the one who can maintain the most balanced outcome,” he said.
Thailand’s position comes amid growing pressure to secure better access to the U.S. market, where Thai exports currently face an average tariff of 36%. While Thailand has offered to reduce tariffs on thousands of American products, Paopoom warned that reciprocal expectations from Washington—such as increased access to Thai markets—could have adverse effects on domestic industries.
He added that a zero-tariff model similar to Vietnam’s was not feasible for Thailand, as it would expose sensitive sectors to competition and undermine national interests. Strategic products, particularly in agriculture and livestock, would need to be excluded from any comprehensive deal.
Commerce Minister Jatuporn Buruspat confirmed that Thailand has proposed reducing tariffs on up to 90% of U.S. goods—up from 60% previously—covering around 10,000 products. He noted that the government is preparing for both best- and worst-case tariff scenarios, including potential retaliatory measures by the U.S.
Chanintr Chalisarapong, vice chairman of the Thai Chamber of Commerce, told Bloomberg News that the proposed reductions could bring final tariff rates to around 18–20% and cut Thailand’s $46 billion trade surplus with the U.S. by as much as 70% within three years. He described the offer as more ambitious than those made by other regional players, including Indonesia and Vietnam.
The government has tasked relevant agencies with drafting contingency plans to protect vulnerable sectors, as the talks continue. Officials have stressed that while Thailand remains open to fair trade, the integrity of local industries must remain a priority.