### Thailand's Urgent Trade Negotiations to Avoid 36% Tariff Hike Thailand is currently engaged in critical negotiations with the United States to avert a potential 36% tariff on its exports, which could significantly impact its economy. The Thai government is proposing various trade concessions, including increased imports of U.S. goods and a commitment to reduce its substantial trade surplus with the U.S. by 70% over the next five years. This effort is seen as essential to maintain economic stability and investor confidence in Thailand's market, especially as the deadline for negotiations approaches on July 9, 2025, when current tariff rates are set to expire [https://www.thailand-business-news.com/united-states/232403-thailand-to-grant-additional-trade-concessions-to-the-us-to-avoid-a-36-tariff][https://seekingalpha.com/news/4465476-thailand-offers-more-trade-concessions-to-avert-36-us-tariff---report]. ### Structure of Thailand's Trade Proposal 1. **Trade Concessions**: Thailand is offering to cut tariffs to zero on many U.S. imports, aiming to enhance market access for U.S. agricultural and industrial goods [https://www.thestar.com.my/aseanplus/aseanplus-news/2025/07/07/thailand-submits-new-trade-proposal-offering-zero-tariffs-on-many-us-goods]. 2. **Reduction of Trade Surplus**: The Thai government plans to reduce its $46 billion trade surplus with the U.S. by 70% within five years, with a goal of achieving balance in seven to eight years [https://seekingalpha.com/news/4465476-thailand-offers-more-trade-concessions-to-avert-36-us-tariff---report]. 3. **Increased Purchases**: The proposal includes commitments to increase purchases of U.S. energy products and Boeing jets, which are significant components of U.S. exports [https://www.bangkokpost.com/business/general/3064474/thailand-to-offer-us-more-trade-concessions-to-avert-36- tariff]. 4. **Deadline Pressure**: The urgency of these negotiations is heightened by the impending deadline, as the U.S. has threatened to impose the 36% tariff if an agreement is not reached by July 9, 2025 [https://www.tbsnews.net/worldbiz/usa/thailand-has-submitted-latest-trade-proposal-united-states-finance-minister-1182461]. ### Supporting Evidence and Data - **Current Tariff Rates**: The baseline tariff for most nations is currently set at 10%, which would be drastically increased to 36% if negotiations fail [https://en.vietnamplus.vn/thailand-yet-to-reach-tariff-deal-with-us-official-post322186.vnp]. - **Trade Surplus Figures**: Thailand's trade surplus with the U.S. stands at approximately $46 billion, highlighting the significant economic stakes involved in these negotiations [https://seekingalpha.com/news/4465476-thailand-offers-more-trade-concessions-to-avert-36-us-tariff---report]. - **Market Access Proposals**: The Thai government is proposing zero tariffs on a range of U.S. goods, which could facilitate greater trade flow and economic cooperation [https://www.thestar.com.my/aseanplus/aseanplus-news/2025/07/07/thailand-submits-new-trade-proposal-offering-zero-tariffs-on-many-us-goods]. ### Conclusion: Thailand's Strategic Trade Maneuvers In summary, **Thailand is making significant efforts to negotiate trade concessions with the U.S. to avoid a punitive 36% tariff that could severely impact its economy**. The key components of this strategy include: 1. Offering zero tariffs on many U.S. goods to enhance market access. 2. Committing to a substantial reduction of its trade surplus with the U.S. over the next five years. 3. Increasing purchases of U.S. energy and aircraft to strengthen bilateral trade relations. 4. Acting under a tight deadline, with negotiations needing to conclude by July 9, 2025, to prevent the imposition of higher tariffs. These actions reflect Thailand's urgent need to maintain economic stability and foster investor confidence in the face of potential trade barriers [https://www.thailand-business-news.com/united-states/232403-thailand-to-grant-additional-trade-concessions-to-the-us-to-avoid-a-36-tariff][https://www.bloomberg.com/news/articles/2025-07-06/thailand-to-offer-us-more-trade-concessions-to-avert-36-tariff].