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Thailand Delays U.S. Trade Talks Amid Tariff Threats and Ongoing Policy Review

Thailand has postponed its upcoming trade negotiations with the United States after Washington requested a review of several key issues, Prime Minister Paetongtarn Shinawatra confirmed on Tuesday. Originally slated for April 23, the talks will be rescheduled, though a new date has yet to be announced.

The delay comes at a critical time for Thailand, which could face U.S. tariffs as high as 36% if a resolution is not reached before a global trade moratorium expires in July. The country remains one of the most heavily impacted in Southeast Asia by tariffs imposed during the Trump administration.

“We are not dragging our feet,” Paetongtarn said during a press briefing. “We are carefully reviewing necessary issues, including tariff structures that may need appropriate adjustments.” She noted that agricultural exports and potential import revisions are under close scrutiny as part of Thailand’s broader trade review.

The United States was Thailand’s largest export destination in 2024, accounting for 18.3% of total exports—equivalent to $54.96 billion. U.S. officials have pointed to a $45.6 billion trade deficit with Thailand as justification for pushing tougher trade terms.

“We are consulting experts and stakeholders to ensure our approach is well-informed,” the prime minister added. “Our goal is to protect Thailand’s agricultural interests while ensuring any agreement is fair for both sides.”

The pressure on Thailand’s agricultural sector is already mounting. Thai rice exports fell by 30% in the first quarter of 2025, raising concerns about whether the country can meet its annual export target of 7.5 million metric tons. In 2024, Thailand exported 9.94 million tons of rice worth 225.65 billion baht, with the U.S. ranking as its third-largest buyer by volume.

Finance Minister Pichai Chunhavajira, who had been expected to join the trade delegation in Washington, confirmed that while the top-level talks have been delayed, technical discussions are continuing. He also indicated that there are no immediate plans for his travel to the U.S.

With the July deadline looming, both governments appear to be reassessing their negotiating positions. For Thailand, the challenge lies in striking a balance between safeguarding its vital export sectors and maintaining strong economic ties with its most important trading partner.

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