In a significant development for Thailand's economy, Finance Minister Pichai Chunhavajira announced a new trade agreement with the United States, introducing a 19% tariff rate on Thai exports. This reduction from the previous 36% rate is expected to enhance Thailand's global competitiveness and attract increased investor confidence. The U.S. remains Thailand's largest export market, accounting for 18.3% of its exports in the previous year, valued at $54.96 billion. Major Thai exports to the U.S. include electronics and rubber products, while imports consist largely of crude oil, machinery, and chemicals. The revised tariff rate aligns Thailand with regional peers like Indonesia and Vietnam, which secured U.S. tariff rates of 19% and 20%, respectively.
To mitigate the impact on domestic businesses and farmers, the Thai government plans to implement support measures, including subsidies, soft loans, tax incentives, and regulatory reforms. These initiatives aim to build a resilient and adaptive economy amid global challenges. As a result of the trade agreement and supportive measures, the finance ministry slightly revised its 2025 economic growth forecast from 2.1% to 2.2%. This positive outlook reflects the government's commitment to fostering economic growth and stability, ensuring that Thailand remains a competitive player in the global market.