BANGKOK — Thailand’s Cabinet on Tuesday approved a significant expansion of U.S. corn imports under a new reciprocal trade arrangement, signaling closer agricultural ties with Washington and efforts to stabilize domestic feed costs amid a recovering industrial economy.
Under the measure, Thailand will allow duty-free imports of up to 1 million tonnes of U.S. feed corn between September 2025 and June 2026, replacing the previous 54,700-tonne quota that carried a 20% tariff. Importers will be required to purchase local corn at a 3:1 ratio to limit pressure on Thai farmers and maintain price stability ahead of the domestic harvest season.
The decision implements the results of tariff negotiations with the United States initiated under the previous administration. Officials said the move aims to balance supply for Thailand’s animal feed industry, which has struggled with high input costs and insufficient local production.
Deputy Prime Minister Suchart Chomklin, who oversees the Ministry of Industry, said the policy comes as Thailand’s manufacturing sector shows signs of recovery. The country’s Manufacturing Production Index rose 1.47% year-on-year in the second quarter of 2025 to 96.75, marking its first growth after three straight quarters of contraction. Gains were driven by hybrid and electric vehicle exports, animal feed production, and palm oil.
Meanwhile, Thai exports continued to expand for a 14th consecutive month in August, reaching US$27.7 billion, up 4.8% from a year earlier. Growth slowed slightly after the implementation of U.S. reciprocal tariffs, but exports of electronics and home appliances remained resilient despite weak American demand.
The Ministry of Commerce expects exports to keep growing through the end of 2025, supported by rising demand from key partners including the United States, China, and ASEAN, as well as recovering markets in the Middle East and Africa.
Officials said that while the new U.S. corn import quota reflects Thailand’s commitment to trade liberalization, the government will closely monitor its impact on domestic producers and adjust measures to maintain market balance.
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