US and Thailand Agree to 19% Reciprocal Import Tariff
The United States and Thailand reached a deal setting a 19% import tariff on Thai goods in exchange for near-total market access for U.S. products.
The Federal government of the United States and the Government of Thailand have reached a preliminary agreement to implement a 19% reciprocal import tariff on Thai goods, effective August 7, 2025. President Donald Trump reduced the rate from an initial threat of 36% to address Thailand's $45 billion trade surplus. In exchange, Thailand pledged to eliminate import levies on over 90% of U.S. items, though it secured protections for its domestic pork and corn industries.
To prevent the transshipment of Chinese goods—which account for one-third of Thai exports to the U.S.—Thailand is reforming its certificate of origin process with assistance from U.S. Customs and Border Protection. Transshipments will face a higher 40% tariff. A transition period allows goods shipped before August 7 and sold in the U.S. before October 5 to face a lower 10% tariff.
Thai officials, including Deputy Prime Minister Pichai Chunhavajira, stated the rate maintains Thailand's competitiveness against regional peers like Vietnam and Indonesia. To support affected entrepreneurs and farmers, the Thai government is reviewing a 1 billion baht support fund and has established a One Stop Service Consultation Center in Bangkok. Despite these measures, the deal is projected to reduce Thailand's economic growth by 1.5 percentage points next year.
