### Thailand's Strategic Moves to Avert Looming US Tariffs Thailand is currently engaged in negotiations with the United States to avoid a significant 36% tariff on its exports, which is set to take effect on August 1, 2025. In a bid to persuade the Trump administration to reconsider this tariff, Thailand is contemplating offering zero-duty access for a broader range of US goods. This strategy is part of a larger effort to mitigate the potential economic impact of the tariffs, which could reduce Thailand's economic growth by 1% if implemented. The Thai government is also setting aside 200 billion baht for soft loans to support affected sectors [https://economictimes.indiatimes.com/news/international/business/thailand-considering-offering-zero-tariffs-on-more-u-s-imports-finance-minister-says/articleshow/122428303.cms]. ### Breakdown of Thailand's Negotiation Strategy 1. **Zero Tariff Proposal**: Thailand is considering eliminating tariffs on additional US imports to encourage a favorable trade agreement. 2. **Trade Surplus Reduction**: The Thai government aims to reduce its $46 billion trade surplus with the US by 70% over the next five years, striving for a balanced trade status within seven to eight years. 3. **Increased Purchases**: Thailand plans to boost imports of US agricultural and industrial products, as well as energy and Boeing jets, to strengthen bilateral trade relations. 4. **Financial Support**: A fund of 200 billion baht is being allocated for soft loans to help mitigate the effects of the impending tariffs on local businesses [https://www.thestar.com.my/aseanplus/aseanplus-news/2025/07/14/thailand-mulls-zero-duty-for-more-us-goods-to-win-tariff-deal]. ### Supporting Evidence and Data - **Tariff Impact**: The proposed 36% tariff could lead to a 1% reduction in Thailand's economic growth [https://www.thailand-business-news.com/united-states/232403-thailand-to-grant-additional-trade-concessions-to-the-us-to-avoid-a-36-tariff]. - **Trade Surplus Goals**: Thailand's target to cut its trade surplus with the US by 70% is a significant commitment, aiming for a balanced trade within 7-8 years [https://seekingalpha.com/news/4465476-thailand-offers-more-trade-concessions-to-avert-36-us-tariff---report]. - **Financial Allocation**: The government has earmarked 200 billion baht for soft loans to support sectors affected by the tariffs [https://economictimes.indiatimes.com/news/international/business/thailand-considering-offering-zero-tariffs-on-more-u-s-imports-finance-minister-says/articleshow/122428303.cms]. ### Conclusion: Thailand's Urgent Trade Negotiation Efforts In summary, Thailand is actively pursuing a multifaceted strategy to avert the impending 36% tariff from the US. The key components of this strategy include: 1. **Offering zero tariffs on more US goods** to foster goodwill and encourage negotiations. 2. **Aiming to significantly reduce its trade surplus** with the US, demonstrating a commitment to balanced trade. 3. **Increasing imports of US products** to strengthen bilateral relations and economic ties. 4. **Allocating financial resources** to support local businesses that may be adversely affected by the tariffs. These efforts reflect Thailand's urgent need to secure a favorable trade agreement before the August deadline, highlighting the importance of international trade relations for its economic stability [https://www.bloomberg.com/news/articles/2025-07-08/thailand-confident-of-securing-lower-us-tariff-with-trade-offers].