Thailand Follows Vietnam, Will Lower US Goods Tax To Avoid Trump Tariffs

JAKARTA - Thailand will increase US imports, lower some higher taxes on American goods and overcome non-tariff barriers.

The Thai government is seeking to negotiate a better deal on the new US tariff. The 36% rate imposed on Southeast Asia's second-largest economy is among the higher rates imposed by US President Donald Trump's administration, larger than officials anticipated.

Thailand is not in a hurry to go to the United States to negotiate because proposals take time to prepare, said Pichai Chunhavajira, who will lead Thai negotiations.

He said Thailand would try to balance trade with the United States within 10 years.

Prime Minister Paetongtarn Shinawatra on Tuesday said a meeting between Thailand and the United States Trade Representatives had been confirmed, but gave no further details.

Thai exporters should also look for new markets to diversify risks, he said, adding the government would provide relief measures for tariff-affected businesses.

Tariffs can cut economic growth by one percent of this year's points in export-dependent countries, Pichai said.

Before high tariffs were announced, the government is targeting a 3% growth this year, following a 2.5% expansion last year, a level far behind most of its neighboring countries.

The government says it will import more US goods, such as corn, soybeans, crude oil, etana, liquefied natural gas, cars and electronics, and aircraft, and will review rules on imports of US pork.

Thailand had a trade surplus with the United States of $35.4 billion last year, according to government data, while Washington has set its deficit with Thailand at $45.6 billion.