BGA Thailand Managing Director Teerasak “Art” Siripant and Analyst Jirawat Suriyashotichyangkul wrote an update to clients highlighting new developments in Thailand’s trade space.

Context

  • Thailand concluded its second formal tariff negotiation with the United States during a two-day session held from July 1-2. Despite submitting an updated proposal July 6, Washington formally reimposed a 36 percent tariff on Thai goods July 7, matching the level announced in April.
  • The decision leaves Thailand among the countries that did not secure tariff reductions, while some regional peers — such as Cambodia, Laos and Myanmar — obtained partial relief. Vietnam’s success in finalizing a reciprocal trade agreement further underscores the divergence in negotiation outcomes. For Thailand, this outcome reflects both structural constraints and missteps. Key challenges included limited trade leverage, sensitivities around human rights concerns and the perceived lack of a strong enforcement road map, particularly on rules of origin and import controls.

Significance

  • Tariff Reimposed, Not Yet Implemented: The United States confirmed the 36 percent tariff rate on Thai goods July 7, but formal implementation is set for August 1. Thailand has since submitted a counter-proposal and continues to engage diplomatically with the hope of securing a revision. Although the decision signals Washington’s hardening stance on enforcement, Thai officials maintain that negotiations remain open, if only within a narrowing window.
  • Thailand’s Position Unchanged, Region Moves Ahead: Unlike neighboring Cambodia and Laos — which saw tariff reductions — Thailand’s unchanged 36 percent rate signals a loss of comparative standing. Vietnam’s finalized deal and Cambodia’s draft joint statement suggest the United States is rewarding rapid, transparent cooperation. Thai industry groups are expected to step up calls for Cabinet-level intervention, short-term support measures and clearer diplomatic communication. Private-sector frustration is intensifying, particularly in export-heavy sectors.
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Implications

  • The reimposition of a 36 percent tariff on Thai exports to the United States marks a significant economic inflection point. Although Thailand did not yet achieve tariff relief like some regional peers, the outcome does not represent a collapse in engagement; rather, it signals that future recalibration will require stronger enforcement and trade-balancing mechanisms. The decision reinforces Washington’s preference for structured commitments and underscores the narrowing space for informal negotiations that are conducted in goodwill.
  • BGA recommends that clients take the following immediate steps to adapt to the new tariff environment:
  • Review trade contracts and assess margin exposure under the new tariff regime.
  • Strengthen documentation of rules of origin to support compliance and minimize disputes.
  • Explore rerouting, local production buffering and near-shoring strategies where feasible.
  • Monitor bilateral signals for reengagement opportunities, especially this year.

We will continue to keep you updated on developments in Thailand as they occur. If you have comments or questions, please contact BGA Thailand Managing Director Teerasak “Art” Siripant at tsiripant@bowergroupasia.com.

Best regards,

BGA Thailand Team

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Managing Director

Art is an intuitive leader with a strong set of relationships with Thailand’s government, business, media and civil society leaders. His network spans a diverse set of stakeholders, from farmers in rural Thailand to the top echelons of Thailand’s political leadership. Prior to joining BGA, Art spent a decade serving as the chief political advisor to the Australian ambassador to Thailand. In this role, he had a front row seat to the most significant political and economic developments in Thailand. Earlier, he served as an army intelligence officer in the Royal Thai Armed Forces. Art has played a central role ... Read More