Trade Relief for Thailand: U.S. Cuts Tariff to 19%

Thailand has welcomed the United States’ decision to impose a reduced 19 percent tariff on Thai exports, calling it a “major success” after weeks of tense negotiations. The revised rate, ordered by President Donald Trump, is significantly lower than the initially proposed 36 percent levy.

The Thai government had been actively lobbying Washington to lower the trade barriers that threatened key sectors of its export economy. The compromise came under Trump’s broader “Liberation Day” measures, a policy shift aimed at reshaping global trade to favour American economic interests.

“This finalised deal, setting US import tariffs at 19 percent, marks a major success for Thailand,” said government spokesman Jirayu Huangsab. “It reflects a win-win approach that will help preserve Thailand’s export base and support long-term economic stability.”

The United States’ goods trade deficit with Thailand reached $45.6 billion in 2024, an increase of 11.7 percent from the previous year, according to data from the US Trade Representative. Thailand’s economy has been slow to recover post-COVID-19, with a weakened tourism industry and sluggish growth.

In May, the Thai government revised its 2025 GDP growth forecast down to 2.3–3.3 percent, citing tariff uncertainties. The nation recorded a modest 2.5 percent growth in 2024.

The tariff decision came just days after President Trump reportedly played a role in brokering a ceasefire between Thailand and Cambodia following five days of deadly border clashes — the worst in decades. Over 40 people were killed, and more than 300,000 civilians were displaced due to the violence.

Analysts view the reduced tariff rate as both a diplomatic and economic victory for Thailand, offering some relief as the nation works to revive its key industries and navigate a fragile recovery.