[Source/Observer Network, Zhang Jingjuan] In the so-called "reciprocal tariff" in the United States, Thailand, the second largest economy in Southeast Asia after Indonesia, is proposed to be subject to a 36% tariff, prompting Thailand to seek negotiations to reduce the tariff.

According to a report by Thai media The Bangkok Post, on April 22 local time, Thai Prime Minister Paetongtarn Shinawatra said that the negotiation on the high trade tariff between Thailand and the US has been postponed due to the US side's request for Thailand to review important issues.

The negotiation was originally planned to take place on April 23. As one of the Southeast Asian countries most affected by President Trump's tariff measures, if no tax reduction agreement can be reached within the "90-day deferral period" given by the Trump administration, Thailand will face high tariffs.

Paetongtarn said that a new negotiation date is being arranged, "Our actions will not be slow. We are reviewing the important issues raised by the US side, including possibly adjusting the tariff appropriately."

She said that Thailand's agricultural exports and other imported products are under review.

The United States is Thailand's largest export market in 2024, accounting for 18.3% of Thailand's total exports, amounting to $54.96 billion. The bilateral trade deficit between the US and Thailand is $45.6 billion, which has significantly increased compared to about $7 billion at the beginning of Trump's first term.

Paetongtarn added, "We are consulting with academia and various opinions to fully respond to the current situation. We are doing our best to protect agricultural interests, and the negotiation should be mutually beneficial."

Thai Prime Minister Paetongtarn Video Screenshot

It was reported that Pichai Chunhavajira, the Thai Minister of Finance who was originally scheduled to attend the talks in the US, said that although the US postponed the negotiation, the consultations of the working group are still ongoing. He said he currently has no plans to visit the US soon.

Pichai Chunhavajira, as Thailand's chief negotiator, also did not travel to Seattle to meet with American businessmen last week as previously announced.

Pichai Naripthaphan, the Thai Minister of Commerce, who is also a member of the negotiation team, said that given the "good and long-term" bilateral relationship between the two countries, the Thai side hopes to achieve a "good result" whenever the negotiation is restarted.

It is worth noting that the Federation of Thai Industries (FTI) said on April 22 that Thailand's industrial confidence index fell for the first time in three months in March, and the future index showed that the index would further decline due to concerns about US tariffs.

The FTI's industrial confidence index dropped from 93.4 in February to 91.8 in March. Another FTI index predicting confidence in the next three months also fell for the first time in three months, dropping from 97.6 in the previous survey to 95.7 in March.

However, Apichit Prasoprat, vice president of FTI, said at a press conference that the US decision to suspend additional tariffs for 90 days has positive significance, giving Thailand more preparation time.

In addition, according to data from the Thai Rice Exporters Association, due to the impact of tariffs, Thailand's rice export volume fell by 30% in the first quarter, and the full-year export volume may fall below the expected 7.5 million metric tons.

Last year, Thailand's rice export volume was 9.94 million tons, valued at 225.65 billion Thai baht. According to export volume, the US is Thailand's third-largest market.

The Paetongtarn government said that if no agreement can be reached through negotiations to reduce tariffs, Thailand's economic growth rate this year could be reduced by at least 1 percentage point.

To facilitate the agreement, Thailand has proposed increasing imports of American corn, natural gas, and ethane, while reducing import tariffs and eliminating non-tariff barriers.

This article is an exclusive contribution from Observer Network and cannot be reprinted without permission.

Original source: https://www.toutiao.com/article/7496087856759292451/

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