FX.co ★ Thailand Aims to Cut Trade Surplus with U.S. to Avoid Tariffs

Thailand has outlined a plan to significantly reduce its $46 billion trade surplus with the United States by 70% over the next five years, aiming to achieve a balanced trade relationship within seven to eight years, Finance Minister Pichai Chunhavajira disclosed to Bloomberg News. This strategic initiative is designed to enhance bilateral trade and comes at a critical juncture, preceding the July 9 deadline when a 90-day suspension of U.S. tariffs—currently set at a maximum of 10% for most nations—is due to conclude. The U.S. has indicated it will impose a 36% tariff on Thai imports if the two countries fail to reach an agreement. Thailand is advocating for a favorable tariff rate of 10%, although Pichai noted that a rate between 10% and 20% would be acceptable. An updated proposal is anticipated to be submitted ahead of the impending deadline.