Thailand's business leaders push for tax-free US goods amid tariff standoff

A top private sector alliance has proposed that the government exempt imports of most US-made products from import taxes—similar to those under free trade agreements—in hopes of prompting the Trump administration to reconsider the 36% reciprocal tariff on Thai goods entering the US market.

Pote Aramwattananont, president of the Thai Chamber of Commerce, led representatives of the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB) in a three-hour meeting with Finance Minister Pichai Chunhavajira on Wednesday to discuss Thailand’s tariff proposal, ahead of the third round of negotiations with the US before the August 1 deadline.

Pote said that, under an FTA framework, tariff exemptions on US imports may not cover all US products and the government should be able to manage the impacts of the high tariff imposed by the US, with the hope that it will be reduced to the point that Thai products can remain competitive against those from, for example, Vietnam.

Pichai reportedly told the private sector that he hopes that there will be a third round of tariff talks with the US, adding that Thailand’s revised proposal, sent to Washington on July 6, has not yet received a response.

He said he will consider the JSCCIB’s proposal.

Also on Wednesday, the Thai National Shippers’ Council submitted a list of recommendations for Pichai to consider.

The recommendations include a zero rate on many as US product imports, extensions of Board of Investment incentives for foreign direct investments and increased imports of energy from the US.