Thailand is keen to engage in constructive discussions with the US to foster mutual benefits amid trade tensions.
Higher US tariffs on Thai products could result in losses of US$7-8 billion, according to the Commerce Ministry.
Vuttikrai Leewiraphan, the permanent commerce secretary, said Thailand is prepared to navigate any trade policies from US President Donald Trump, including reciprocal tariffs expected to be announced on April 2.
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The US has proposed four types of tariff measures: country-specific tariffs; product-specific tariffs; tariffs on goods tied to issues such as drug trafficking, immigration and security; and reciprocal tariffs.
Mr Vuttikrai said the implications of these tariffs are notable, given that the US market makes up 20% of global trade and serves as a major partner for Thai exports.
The initial round of US tariffs has already affected Thai exports, particularly for steel and aluminium, where tariffs surged from rates of 0-12.5% to 25% for steel, and from 0-6.25% to 25% for aluminium, effective March 12.
For automobiles and auto parts, this sector is slated for tariff increases from 0-4.9% to 25%, beginning on Thursday.
He said the US might impose additional tariffs on Thai imports in 2-3 categories, notably semiconductors, which could see a 25% tariff, along with pharmaceuticals, wood and forest products.
Moreover, Thailand may face reciprocal tariffs that mirror the higher rates applied to US goods.
Thailand imposes tariffs on US industrial and agricultural products that are 11% higher than the US rate. If the US were to reciprocate with matching tariffs, the estimated loss could tally $7-8 billion, noted the ministry.
To address these challenges, Thailand is engaging with the US Trade Representative (USTR), members of Congress and other stakeholders. Although a formal meeting with the USTR has yet to be scheduled, Thailand is seeking an opportunity to discuss these issues further, said Mr Vuttikrai.
He said Thailand may consider proposing a reduction in import tariffs and increasing the volume of imports to help address the trade deficit. Potential imports could include animal feed, soybeans, beef, alcohol and aircraft.
Thai Airways is considering leasing or purchasing aircraft from the US, while the Energy Ministry has been in talks about importing crude oil, petrochemicals, natural gas and liquefied natural gas.
Meanwhile, the Thai private sector is eager to ramp up investments in the US, which would generate job opportunities in key states that strongly support Trump, said Mr Vuttikrai.
Addressing concerns regarding potential trade rule circumvention due to production shifts to Thailand, he said the Commerce Ministry is managing the situation, as the Department of Foreign Trade pinpointed 49 products at risk, with a particular focus on steel and items sourced from China.
To shield Thai businesses from negative impacts, the private sector proposed to the government two strategies.
The first is a short-term relief plan for small and medium-sized enterprises, which includes lowering interest rates and enhancing access to funding.
The second is a long-term strategy aimed at finalising free trade pacts with several markets, including the EU, to counteract the effects of US tariff retaliation.
Kriengkrai Thiennukul, president of the Federation of Thai Industries, said the private sector needs to prepare comprehensive plans and data for US tariff hikes on exports, particularly in the auto and steel industries.
Poj Aramwattananont, chairman of the Thai Chamber of Commerce, said Thailand should consider increasing imports from the US, particularly for agricultural goods such as maize, soybeans, seafood and animal offal, as well as whisky, wine and energy products.
He said the government needs to work to ensure fair and equitable negotiations on tariff quotas.
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