Thai Finance minister hails lowered US tariffs as reflection of close ties

Finance Minister Pichai Chunhavajira has welcomed the US administration’s decision to impose a 19% reciprocal tariff on imports of Thai goods into the US market, claiming that it reflects the close relationship between the two countries.

He said that reduction from 36%, as earlier imposed, will enable Thailand to remain competitive in the global market, enhance investors’ confidence in Thailand and will pave the way for economic expansion.

He noted that this positive outcome is a clear sign that Thailand needs to expedite adjustments to strengthen the economy and be prepared to cope with future challenges.

Pichai, who was head of the Thai negotiating team on tariffs, said that the government’s responsibility is, however, not over yet. It will have to take care of small and medium-sized enterprises, as well as farmers, who are likely to be hard hit by increased competition from US imports, many of which will now be zero rated or subject to very low import duties.

The government, said Pichai, has already developed several measures to help affected SMEs and farmers, including soft loans, subsidies and tax measures, as well as reform of regulations so they remain competitive in domestic market.

Government Spokesman Jirayu Huangsap said that the 19% tariff, which came into force today, marks an important achievement by Thailand’s negotiating team.

Other ASEAN countries which are being taxed at 19% include Indonesia, the Philippines, Cambodia and Malaysia. Laos and Myanmar are at 40%, Brunei, 25%, Vietnam, 20% and Singapore, 10%.