omersukrugoksu
Thailand is making a final push to avoid steep U.S. tariffs by offering expanded market access for American agricultural and industrial goods, as well as increased purchases of energy and Boeing (NYSE:BA) aircraft.
Finance Minister Pichai Chunhavajira told Bloomberg News on Sunday that the new proposal aims to shrink Thailand’s $46 billion trade surplus with the U.S. by 70% within five years and reach full trade balance in seven to eight years, a faster timeline than previously promised.
The plan, expected to be submitted before the July 9 tariff deadline, would allow immediate removal of most Thai trade barriers for U.S. goods, with some phased reductions to follow.
The proposal comes as Trump’s administration prepares to impose a 36% tariff on Thai exports unless a deal is reached. Thailand hopes to secure a reduced rate, ideally around 10% to 20%, similar to neighboring Vietnam, which recently agreed to new tariffs of as much as 40%.
To sweeten the deal, Thailand has pledged larger energy imports, including liquified natural gas from the U.S., and more Boeing (NYSE:BA) jet orders. Thai Airways is considering buying as many as 80 aircraft, while petrochemical firms plan to increase U.S. ethane imports.
A favorable outcome is seen as critical for Thailand’s economy, already strained by weak consumption, high household debt and political uncertainty following the suspension of Prime Minister Paetongtarn Shinawatra.
Thailand’s exports jumped 15% so far this year, boosted by front-loaded orders ahead of the looming tariff hike, Bloomberg News reported.