Thailand's Bold Strategy to Diffuse U.S. Tariff Threat

Thailand is taking proactive measures to defuse a brewing trade tension with the United States, aiming to sharply reduce its trade surplus with the U.S. by a notable 70% over the next five years. The ambitious plan, envisioned by Thailand's Finance Minister Pichai Chunhavajira, is designed to achieve a balanced trade status within the next seven to eight years.

Thailand's strategy comes in response to Washington's threat of imposing a 36% levy on Thai imports, should a resolution not be negotiated before a looming July 9 deadline. The Finance Minister has indicated a best-case scenario would be to secure a tariff rate that caps at 10%, although a range of 10% to 20% would still be deemed acceptable.

Pichai has shared plans to present a revised trade proposal to U.S. officials ahead of the deadline, as Thailand seeks to keep tariffs at a more manageable level, ensuring continued healthy economic interactions between the two nations.

(With inputs from agencies.)