Thailands Trade Talks with U.S. Postponed Amid Concerns Over Tariffs
On April 22, 2025, Thai Prime Minister Paetongtarn Shinawatra announced the postponement of scheduled trade negotiations with the United States, originally set for April 23. While no specific reason was provided for the delay, the development has raised concerns about the potential impact on Thailand's economy, especially in light of recent tariff discussions
Commerce Minister Pichai Naripthaphan had previously highlighted a significant increase in Thailand's export growth in March, surpassing February's 14% annual rise. He attributed this growth to ongoing tariff negotiations with the U.S., emphasizing that favorable outcomes could sustain Thailand's export momentum. Currently, the U.S. imposes a 36% tariff on Thai imports, one of the highest under the Trump administration. The U.S. remains Thailand’s largest export market, accounting for 18.3% of total exports, valued at $54.96 billion last year.
The Bank of Thailand has expressed concerns that the newly imposed U.S. tariffs could negatively affect the country's economic growth, although not as severely as during the COVID-19 pandemic. Assistant Governor Sakkapop Panyanukul noted that the tariffs have already disrupted production and delayed investments, with more pronounced effects expected in the latter half of 2025. Consequently, the GDP growth forecast for the year has been revised to under 2.5%.
In response to the tariff challenges, Thailand plans to increase imports of U.S. liquefied natural gas (LNG) over the next five years. Finance Minister Pichai Chunhavajira announced an existing agreement to import 1 million tonnes of LNG worth $500 million in 2026, as part of a larger 15-year deal totaling 15 million tonnes. Additionally, Thailand is negotiating another contract to import over 1 million tonnes of LNG worth approximately $600 million during the same period. These measures aim to mitigate the tariff effects and support bilateral trade relations.
The postponement of the trade talks introduces uncertainty into Thailand's economic landscape, with stakeholders closely monitoring developments to assess potential impacts on trade and growth.
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