Thailand proposed to reduce its USD 46 billion trade surplus and increase imports of American goods before a 9 July deadline.
Thailand has proposed a trade deal to the US to avoid a 36% tariff on its exports, aiming for a lower rate of 10–20%.
The country plans to cut its USD 46 billion trade surplus with the US by 70% within five years and reach trade balance in seven to eight years, according to Finance Minister Pichai Chunhavajira.
The proposal comes ahead of the 9 July deadline, when a temporary 10% tariff cap is set to expire.
The plan includes immediate removal of import duties or non-tariff barriers on most US goods, with gradual easing for others. To help reduce the trade gap, Thailand has committed to buying more American products, including ethanol, liquefied natural gas, and Boeing aircraft. Recent talks between Thai and US officials marked the first ministerial-level discussion on the issue.
Pichai warned that failure to reach an agreement could reduce Thai exports and cut economic growth by up to 1%. Thai exports rose 15% in the first five months of 2025, boosted by early orders during the temporary tariff break.
