BANGKOK (Reuters) -Thailand’s finance minister said on Friday that the 19% tariff rate agreed with the United States will help bolster its competitiveness globally, boost investor confidence and create opportunities for economic growth.
The new rate is significantly lower than the 36% level announced in April and better aligned with other countries in the region.
The United States was Thailand’s largest export market last year, accounting for 18.3% of total shipments, or $54.96 billion.
“The announcement of the 19% tariff rate reflects the strong friendship and close partnership between Thailand and the United States,” minister Pichai Chunhavajira said on X.
“It helps maintain Thailand’s competitiveness on the global stage, boosts investor confidence, and opens the door to economic growth, increased income, and new opportunities for the country,” he added.
The government is fully aware of the impact on businesses and farmers and has prepared various support measures including budget allocations, soft loans, subsidies, tax incentives, and regulatory reforms, Pichai said.
The support measures will “help Thailand adapt and confidently step into the future global economy,” he added.
Thailand must accelerate its adaptation and move forward in building a stable and resilient economy, ready to face the global challenges ahead, Pichai said.
Thailand’s top exports to the United States last year were computers, teleprinters and telephone sets, and rubber products. Its top imports from the United States were crude oil, machinery and parts, and chemicals.
On Wednesday, the finance ministry raised its 2025 economic growth forecast slightly to 2.2% from 2.1%, based on a tariff rate of 15% to 36%. Thailand’s economy expanded 2.5% last year.
Vietnam and Indonesia negotiated U.S. tariffs of 20% and 19%, respectively.
(Reporting by Orathai Sriring, Kitiphong Thaichareon and Panu Wongcha-um; Editing by Jacqueline Wong and David Stanway)
Comments