Thaksin leaves the door open to joining key US trade talks as the Thai delegation led by Pichai flies out Thursday. Final strategy set at Phitsanulok Mansion ahead of April 21 talks, with focus on tariffs, agriculture, tech and reducing $46.5bn US trade surplus.
Former Prime Minister Paetongtarn Shinawatra said on Monday that he may join negotiations in the United States at a later stage. It came as the former PM said he had spoken to close associates of US President Donald Trump. It comes as the Thai delegation led by Deputy Prime Minister and Minister of Finance Pichai Chunhavajira met at Phitsanulok Mansion, the unused Prime Minister’s official residence in Bangkok. The Thai team will fly to the United States on Thursday, April 17th with talks set to begin on Monday, April 21st in Washington DC.
Government House spokesman Jirayu Huangsap, on Monday, confirmed that Thai negotiators will meet US trade representatives on Monday, April 21st. In the meantime, the Thai mission led by Deputy Prime Minister Pichai Chunhavajira will travel to Washington DC on Thursday, April 17th.
The team will include Minister of Commerce Pichai Naripthaphan and key Prime Ministerial advisors Supavud Saicheua and Pansak Vinyarat. In the last week, Mr. Supavud has spoken about Thailand’s cautious approach in these talks.
Thai negotiators to fly out ahead of April 21 talks with a focus on strategy and private sector outreach
On Sunday, discussions were held at Phitsanulok Mansion, the Prime Minister’s residence in Bangkok, where Mr. Pichai Chunhavajira convened with his negotiating team and top policy advisors to fine-tune Thailand’s multi-layered strategy.
The group, led by Pansak and Supavud, is prioritising a well-rounded framework that touches on key sectors such as agriculture, energy, and emerging technology. Officials reviewed potential partners on the US side, including those from both public and private sectors, to ensure comprehensive and fruitful dialogue.
On the other hand, even at the current baseline rate, Thailand stands to lose up to 1% of GDP. Critically, based on Vietnamese sources, Thailand’s canny Southeast Asian neighbour, only thinks it can lower its 46% tariff to between 22 and 28%.
Undoubtedly, even the prospect of clearing the reciprocal tariffs completely is not on the table in these talks.
Of course, the Thai team will be going in with a positive mindset. Thai government sources spoke of Thailand expanding its longtime relationship with the United States. In particular, reminding the US team that it is its oldest Asian diplomatic partner.
Thailand to push for sector-based framework as US tariff reductions remain off the table for now
At the same time, the Thai delegations will be proposing a broad Thai-US new framework. In brief, this will be based on agriculture and food processing combined with technology.
Finance Minister Pichai Chunhavajira is also set to make a stop in Seattle to meet with key American investors and agribusiness leaders. He hopes to lay the groundwork for expanded economic partnerships.
The meetings are intended to bolster confidence in Thailand’s sincerity and its desire to reduce its significant US trade surplus. This surged to $46.5 billion last year, up from $18.9 billion during the first Trump administration.
On Friday, Minister of Finance and Deputy Prime Minister Pichai ruled out lifting tariffs on pig imports. This came following dangerous political signals from the country’s 200,000 pig farmers. Indeed, it shows the raison d’être for tariffs in the first place. Basically, underdeveloped economies need protections for their businesses and producers. Certainly, until they are fully developed.
Thailand to offer new trade blueprint but remains firm on tariffs protecting key domestic producers
Undoubtedly, Trump has unleashed a new era in geopolitics and economics. His advent since 2017 has demonstrated the weaknesses and vulnerabilities of global free trade. Meanwhile, the Ukraine war has particularly raised the question of national security. At length, this is not well served by global free trade economics. For example, the wipeout of the UK steel industry.
This has now left the UK Labour government moving to nationalise the country’s last steel plant in Wales. Similarly, European reliance on Russian oil at the onset of the Ukraine war.
On Monday, former Prime Minister Thaksin had his own thoughts. He said that for developing economies such as Thailand, the Trump administration is a threat. Nonetheless, he emphasised that the country must be united.
In the last week, his daughter’s government has made efforts to discuss the country’s negotiating strategy with the private sector and business leaders.
Thaksin has privately advised the team to adopt a forward-thinking approach. They must focus on reducing barriers that do not directly protect Thai industries. He has suggested that some luxury US imports could face revised duties. He said that those that serve niche markets are unlikely to disrupt domestic manufacturing.
Thaksin calls for unity and targeted tariff shifts while warning of long-term Trump trade threats
At this time, Thailand is prepared to import more US corn, buy more US LNG and other gas while Thai Airways will purchase more Boeing aircraft.
More significantly, Thailand is preparing to crack down on export fraud. This means adding more sectors to the country’s watch list and being more diligent about which goods are certified for export.
A key change is that export certificates will no longer be signed solely by industry bodies. Previously, both the Federation of Thai Industries (FTI) and the Thai National Shippers’ Council could sign such forms. Now, they will only be certified by the Trade Department at the Ministry of Commerce.
This comes as Thai authorities seek to close loopholes exploited by Chinese firms. They simply used Thai labels to circumvent hefty American tariffs. The review process is being tightened significantly to reassure Washington of Thailand’s commitment to honest trade practices.
In addition, Thailand will move to lower some tariffs on US goods. For instance, the 73% presently imposed on corn.
Thailand set to crack down on export fraud and ease selected US tariffs to reassure Washington
Undoubtedly, it will not be enough to satisfy hard-nosed US negotiators. They are particularly interested in Thailand opening access to the Thai economy for American firms.
Not just in terms of exports but also investment avenues and rights. Furthermore, the Americans want to see Thailand ensure labour rights and workers’ employment conditions.
In short, the goal is to someday achieve a level playing field in trade.
In the meantime, Thailand faces a hard trade-off between protecting its own industries against the threat of losing export advantages. After that, Thailand worries about the onslaught of cheaper Chinese goods flowing into Thailand. These are produced in bigger, government-subsidised factories on the mainland.
Moreover, Thailand is restricted from blocking these imports as a member of the Regional Comprehensive Economic Partnership (RCEP).
In short, Thailand is fighting a losing battle to control China including efforts to evade US tariffs.
All this points to Thailand being forced to fight a battle on two fronts. It is certainly a Herculean challenge. This is where the country’s balanced approach to handling two powers may come unstuck. Indeed, afterwards, Thailand may have to choose.
Thailand torn between US trade pressure and unchecked Chinese imports as the balancing act grows harder
On Monday, Mr. Thaksin was asked if he would take part in the negotiations with the United States. He replied that it would not be appropriate, especially at the beginning of talks. However, he told reporters that he was in contact with close associates of President Trump.
At the same time, he did not rule out the possibility of him joining the talks in some capacity over the coming days.
The former Prime Minister specifically said that he suggested that Thailand should lower its tariffs on key American imports. For example, on luxury motorbikes such as Harley Davidson. These motorbikes are now subject to a stiff 60% tariff in addition to a 15% VAT tax.
Meanwhile, Japan can import motorbikes into Thailand by agreement at a 0% rate.
Despite the stock market volatility and industry scepticism about President Trump’s tariffs, they do look like they will bring about a substantive change in the trade environment.
Thaksin suggests tariff cuts on niche US goods but keeps options open for joining talks later on
Mr. Thaksin’s remarks came as Chinese President Xi Jinping toured Southeast Asian states including Indonesia, Malaysia, and Cambodia. The Chinese leader on Monday said tariffs lead to nowhere. Of course, the question is for whom?
Meanwhile, the Thai negotiators were working diligently with aides at Phitsanulok Mansion, the Prime Minister’s official residence in Bangkok on Monday. Over the weekend, Mr. Thaksin emphasized that despite the turmoil and challenges facing the kingdom, unity is key to success at this time.
Parliamentary figures such as Noppadol Pattama have publicly backed the government’s strategy, stating that despite accusations of delay, the “two Pichais” – Finance Minister Chunhavajira and Commerce Minister Naripthaphan – had worked swiftly, consulting with private stakeholders and developing realistic proposals aimed at reducing trade friction without compromising Thailand’s long-term development.
Xi tours ASEAN as Thai officials meet at home and lawmakers back strategy led by the two Pichais
Noppadol noted the particular challenge of bilateral talks with a US administration focused on reviving domestic manufacturing and addressing its fiscal deficits through tariffs.
He said the Thai proposal had to align with America’s broader geopolitical aims while still safeguarding Thailand’s vital industries.
He added that while success may not be immediate, the government’s intent to reduce the trade surplus, increase US imports, and enhance transparency signalled a serious and credible partner at the negotiating table.
Pichai holds US tariff talks with business. However, Thailand is unlikely to see 10% baseline retained
Trump’s remaking of World trade, if it works, will force Thailand to decide between the US and China
US offers a 90-day tariff pause but Thailand must move faster as it already faces shaved GDP in 2025
The government has said the talks will include considerations of reducing non-tariff barriers and ensuring the American side sees shared benefits. A 90-day grace period has been agreed upon for further dialogue, indicating some flexibility from the US side if progress is visible.
As the April 21 meeting approaches, a final preparatory talks summit is scheduled for April 15. This will be with sector-specific discussions continuing behind closed doors.
All eyes will later be on Washington as Thailand’s top economic minds aim to secure a breakthrough. Certainly, it is one of the kingdom’s most critical trade negotiations in recent history.
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Further reading:
Trump’s remaking of World trade, if it works, will force Thailand to decide between the US and China
US offers a 90-day tariff pause but Thailand must move faster as it already faces shaved GDP in 2025
PM addresses the nation in shock over last week’s earthquake and this week’s Trump tariff bombshell
Finance Minister to travel to US to import more US food and motorbikes while lowering Thai tariffs
Trump’s trade war coming down hard on Thailand despite reports of talk. Reciprocal tariffs days away
