Thailand submits its final offer to the US in trade negotiations, hoping for tax rates competitive with ASEAN countries before the August 1 deadline.

Thailand has entered the final stage of negotiations with the United States on tax rates, with the deadline approaching on August 1, 2025. As pressure mounts from the success of trade deals between other ASEAN countries and the US, Thailand is hoping to secure a competitive tax rate in line with its regional counterparts.

Vietnam was the first in Asia to reach a deal with the US, agreeing to a 20% counter-tariff, followed by Indonesia at 19%. Recently, US President Donald Trump announced a reduced 15% tariff on Japan, down from 25%, after Japan agreed to open its markets, including importing cars, trucks, rice, and some agricultural products. The agreement is expected to create "hundreds of thousands of jobs."

Following a meeting with Philippine President Ferdinand Marcos Jr., Trump also announced a 19% tariff on imports from the Philippines, stating that the Philippines would open its markets to the US without any tariffs, also strengthening military cooperation. Trump did not provide further details on the trade agreement.

The ongoing negotiations, with several Asian countries having already reached agreements, are placing pressure on Thailand, which has officially submitted two rounds of proposals to the US. A final proposal was submitted recently, with Deputy Prime Minister and Finance Minister Pichai Chunhavajira revealing that the US has reviewed 90% of Thailand’s proposal and has made some counter-proposals based on their policy requirements. Thailand will consider these and decide whether they can be met.

“We hope the US will reduce the import tariff from 36% to a rate closer to that of the region,” said Pichai. He added that the US is considering the tax rate as a group of countries, aiming for more efficient management of tariffs.

When asked whether the US had added any new conditions, Pichai confirmed that the US has not requested additional terms, but has outlined the policies they expect from Thailand, which will be reviewed before final decisions are made. Pichai expressed hope that a final answer from the US would come before the August 1 deadline.

"Team Thailand is working hard on all fronts to complete the negotiations. The final proposal was submitted on July 23, and we expect the US to provide their response soon," Pichai said.

Source: The Nation

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