The Thai government is actively negotiating a balanced trade agreement with the United States in response to a 36 percent reciprocal tariff, aiming to protect key domestic sectors while preparing substantial financial relief measures, according to Deputy Finance Minister Paopoom Rojanasakul. The comments were made during the “Unlocking Thailand’s Future… Navigating the Global Crisis” seminar on 15 July 2025.
Thailand is navigating complex trade negotiations with the United States following the imposition of a 36 percent reciprocal tariff, with officials emphasizing the need to protect domestic industries while remaining open to market discussions. The government’s goal, according to Deputy Finance Minister Paopoom Rojanasakul, is to secure a fair and balanced agreement that safeguards both exporters and local producers, including small and medium-sized enterprises (SMEs) and farmers.
Speaking at the MCOT-hosted seminar titled “Unlocking Thailand’s Future… Navigating the Global Crisis,” Mr. Paopoom stated that the Thai negotiating team—referred to as “Team Thailand” and led by Deputy Prime Minister and Finance Minister Pichai Chunhavajira—is working to ensure any outcome supports Thailand’s strategic interests. Rather than focusing solely on achieving the lowest tariff rate, the strategy centers on maintaining a level playing field for all stakeholders.
The Thai government has proposed reducing certain import duties to zero percent but clarified that this does not equate to granting the U.S. unrestricted market access. Mr. Paopoom stressed that the country remains committed to shielding its domestic producers. He referenced Vietnam’s experience, which faces varying tariffs of 20 and 40 percent depending on a product’s Regional Value Content (RVC), as a cautionary comparison.
To cushion the impact of the U.S. tariff, the Ministry of Finance has established a 200 billion baht soft loan program. The funding will come from state-owned institutions, including the Government Savings Bank, and be distributed through both public and private banks. Targeted financial support will be tailored by sector—agriculture, real estate, and exporters seeking alternative markets.
Additionally, the government is utilizing a 110 billion baht central budget to stimulate the economy through rural infrastructure projects such as roads, bridges, and irrigation systems, aimed at job creation. The Ministry of Finance is also working with the Interior Ministry to develop a new debt relief program.
In a forward-looking economic initiative, Mr. Paopoom introduced a plan to attract cryptocurrency-based capital from foreign investors and tourists. This strategy is part of a broader effort to diversify revenue sources, reduce dependency on the national budget, and tap into Thailand’s soft power potential.
Senior officials in attendance at the seminar included representatives from various ministries and financial institutions. Mr. Paopoom’s remarks underscore the government’s commitment to a pragmatic and inclusive approach to economic resilience in the face of shifting global trade dynamics.
