Pichai’s team postpones US trip amid escalating US-China tensions. Thai finance minister delays meeting with US trade reps, while global markets react to Trump’s tariffs. Thailand looks to navigate growing trade challenges, proposing higher soy and corn imports.
Deputy Prime Minister and Minister of Finance Pichai Chunhavajira appears to have postponed his trip to the United States. Despite an announcement from Government House on Monday, he will not now be flying on Thursday and meeting US trade representatives on Monday. Indeed, the Thai minister and his team are to fly out next week. It comes as the scale or the impact of US President Donald Trump’s tariff move is hitting home in capitals across the world. None more so than Beijing. China on Thursday cancelled all post to and from the United States from Hong Kong. Earlier, President Xi Jinping ordered Chinese airlines to stop acquiring Boeing planes and parts. In short, this tariff negotiation must now be seen as a geopolitical struggle between China and the United States.
Deputy Prime Minister and Minister of Finance Pichai Chunhavajira on Thursday indicated that he would not now be travelling to the United States on Thursday. Instead, the Minister, who is heading Thailand’s negotiation team, said he would be flying out next week.
This comes despite an announcement from Government House on Monday that an appointment had been made to meet US trade representatives in Washington DC on Monday, April 21st.
On Thursday, Mr. Pichai said that at this time there is no specific appointment. It came before the Minister met Bank of Thailand Governor Sethaput Suthiwartnarueput at Government House. At the same time, Mr. Pichai underlined that Thailand would not use its reserves to deal with this crisis.
Thailand’s Finance Minister postpones US trip as appointment with trade representatives remains unclear
Indeed, he noted the stability in the markets. In addition, the Bank of Thailand was responsible for preserving such stability.
“As for whether the Bank of Thailand will use its reserves, that is not on my mind because the reserves back up import and export liquidity. When the government wants to do something, we will do it through budget increases,” explained Mr. Pichai.
The Finance Minister also talked about Thailand’s plans to purchase more US corn. However, he specified a quantity of 1 million tons, significantly less than earlier indications. Certainly, the kingdom will also import more soybeans for annual feed purposes from the United States.
Furthermore, he emphasised purchases of American LNG gas, with a contract being negotiated for 2026 worth $500 million over 15 years. Additionally, Minister Pichai talked about contracts for 400,000 tons of Ethane gas worth $100 million. At the same time, Thai Airways will purchase more Boeing aircraft in the medium term.
Thailand is proposing higher US imports, including LNG and corn, but also plans purchases of soybeans
In particular, he specified that executives from Thailand’s PTT Plc will join the US Trade Policy Working Group, which is the Thai negotiation team in discussions in Washington.
The Minister significantly did not, at this time, talk about Thailand lowering its tariffs on imported US goods.
However, he underlined that the objective of the negotiations with US trade representatives is to increase trade between the two countries. Furthermore, Thailand was working towards reducing the $46.5 billion trade deficit with America recorded in 2024.
It is not known what the reason for the delayed departure to the United States is. However, it is increasingly apparent that the US strategy, despite the 90-day pause on higher tariffs, has caused a massive shift in global trading.
Indeed, French Prime Minister François Bayrou on Tuesday described them as a hurricane blowing through world markets. In particular, the French PM described the tariffs as a threat to the very existence of the French state.
Thailand’s response to tariffs, for instance, has been significantly slower than Vietnam’s. Within hours of the announcement, the Secretary-general of the Vietnamese Communist Party and state elder To Lam had spoken to US President Donald Trump.
Thailand’s response to US tariffs lags behind Vietnam, with ongoing trade negotiations underway
Four days later, Vietnamese Deputy Prime Minister Bui Thanh Son, the task force leader, met the US Ambassador in Hanoi, Mr. Marc E. Knapper. Subsequently, Vietnamese Deputy Premier Ho Duc Phoc flew to Washington DC and has already had discussions with United States representatives.
Certainly, it is not known if Thailand has any top-tier talks with the United States. In addition, Vietnam is also offering to buy US LNG gas and more Boeing jet planes. Like Thailand, it is also offering to crack down on fake Chinese exports.
At the same time, Vietnamese sources suggest that they believe a tariff range between 22-28% from the initial 46% will be the outcome of its talks.
Thailand’s already labouring economy is facing a lower 36% rate. Nonetheless, the economy is already reeling under the baseline 10% imposed on April 9th.
Deputy Prime Minister Pichai on Tuesday described lending as having been impaired significantly by the new tariffs. He likened it to a clock stopped while insisting that the financial system remains robust and stable.
Meanwhile, Chinese President Xi Jinping has visited Vietnam. Certainly, the Chinese response to his trade war is becoming more alarming. In the last few hours, it has ordered its airlines to stop ordering or receiving planes and parts from Boeing.
Vietnam accelerates talks with US as Thailand struggles with even baseline tariff impacts on its economy
Of course, the Communist country is struggling under a massive 145% traffic rate. Trump notably waived tariffs on smartphones over the weekend to assist Apple, one of America’s largest firms, but this has been flagged as a temporary measure.
Meanwhile, China’s reaction is becoming more bellicose. Firstly, it sought an alliance with Australia to combat what it terms America’s unilateral and bullying actions. After that was rebuffed, it has made a similar approach to the European Union.
It is increasingly clear, as both Thai and Vietnamese leaders are noting, that this trade war is driving a severe wedge between China and the United States.
Indeed, one so severe that trade partners are being forced to take stiffer actions against the emerging Communist superpower. In a striking move on Tuesday, Hong Kong announced a suspension of post both to and from the United States.
Undoubtedly, this is a warning to the US President that a deeper and more serious rift is emerging.
China’s response to the trade war deepens, as Hong Kong suspends postal services to and from the US
It comes after Trump imposed sweeping tariffs on smaller exports under $800, which had been exempted previously. These particularly facilitated shipments from giant Chinese websites such as Temu and others to the United States.
Later on Tuesday, the Thai Ministry of Commerce issued a statement confirming that its new tight restrictions on exports are not specifically targeted at China. Indeed, it insists that any country exporting goods through Thailand will no longer obtain clearance.
Finance Minister to hold critical talk with Bank of Thailand Governor on US holding before he flies out
Thaksin does not rule out joining talks in the US as the Thai team finalises plans. They fly out on Thursday
In short, the net is tightening as Trump weaves his trade web through negotiation with over 90 countries. At the same time, he has no idea yet what his catch will yield.
Certainly, it appears advantageous to America and particularly disadvantageous to China as well as other developing economies. Of course, the risk is that the fish he is reeling in may be larger and more disruptive than even America’s nets ultimately can bear.
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Further reading:
Thaksin does not rule out joining talks in US as Thai team finalises plans. They fly out on Thursday
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
