BANGKOK — Thailand is proposing an aggressive trade rebalancing plan to cut its $46 billion trade surplus with the United States by 70% within five years, as Bangkok makes a final push to avoid punitive 36% tariffs threatened by the Trump administration before a July 9 deadline.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira gave his first interview to Thai media this morning, July 7, regarding progress following his trip to negotiate trade measures and tariffs with the United States. He said he had sent additional details to the US since last night.
In a separate interview with Bloomberg News late Sunday, Pichai revealed that the revised proposal was submitted Sunday night and includes greater US market access and increased purchases of American goods.
The new proposal is based on the original framework, with improvements in areas Thailand believes are feasible, after listening to the US side’s feedback on which items they are particularly interested in.
Key Proposal Details:
- Aims to cut Thailand’s $46 billion trade surplus with the US by 70% within five years
- Targets trade balance in 7-8 years (faster than previous 10-year timeline)
- Submitted Sunday night, days before the 90-day tariff pause expires
What Thailand is Offering:
- Immediate waiver of import tariffs on majority of US products
- “Aggressive” increases in US energy purchases, particularly LNG
- Major Boeing aircraft orders (Thai Airways eyeing up to 80 jets)
- Thai petrochemical companies pledging more US ethane imports
- PTT considering 2 million tons of LNG annually from Alaska project over 20 years
Mr. Pichai said Thailand has proposed zero percent import tariffs on multiple product categories to accelerate bilateral trade balance, which will not disadvantage other trading partner countries that Thailand has agreements with.
“We have proposed 0% tariffs on many items, which is considerable, and we are confident that Thailand’s economic structure and close cooperation with the US will yield positive results,” he said.
Regarding concerns about agricultural products, Mr. Pichai noted that Thailand is well aware of which products are acceptable or not. The submitted proposal has been adjusted accordingly, as the negotiation process requires time and cannot be decided unilaterally.
However, all parties are moving forward continuously with two clear objectives: accelerating trade balance and increasing long-term bilateral trade value.
“Trade rebalancing within 5-10 years is not the main issue for the US, but rather how we will trade together. If we move forward correctly, the world is ready to recover, global trade will return, and Thailand itself is ready to recover. Imports will increase significantly,” he added.
Regarding concerns about the US preparing to impose 10% tariffs on goods from certain BRICS countries, of which Thailand is a partner, Mr. Pichai stated that they need to look deeper into what Donald Trump means by this. Initially, they have not yet assessed this matter.
Economic Stakes
Bloomberg News also reported that Thailand’s trade-dependent economy is already under pressure from high household debt and weak domestic consumption. A favorable deal would help ease investor concerns amid political turmoil following PM Paetongtarn Shinawatra’s court-ordered suspension over alleged ethical misconduct.
Thai exports have surged 15% in the first five months of this year, driven by front-loaded orders during the tariff pause period.
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