Thai Government Moves Forward to Balance Trade with the U.S., Aims to Cut Trade Surplus by 50%

Thai Government Moves Forward to Balance Trade with the U.S., Targets a 50% Reduction in Trade Surplus within 5 Years The Thai government is strengthening trade negotiations with the U.S. after being closely watched as one of the countries with the largest trade surpluses with the U.S. In 2024, Thailand recorded a trade surplus of over $35 billion, and the 2025 forecast could reach $45 billion, placing Thailand among the top 10 countries with the largest trade surpluses.

U.S. President Donald Trump signed a measure to increase import tariffs on goods from around the world by 10%, starting on April 5, 2025, with Thailand targeted for a 36% tariff, effective April 9, 2025. However, the U.S. announced a 90-day delay on tariffs for countries that agreed not to retaliate, including Thailand, providing an opportunity for negotiations.

A source from the Ministry of Commerce revealed that Thailand has proposed a new trade cooperation framework through the U.S. Trade Representative (USTR), aiming to reduce its trade surplus with the U.S. by 50% within 5 years, down to approximately $20 billion, and create sustainable trade balance within 10 years.

Thailand’s approach consists of 5 main pillars:

Promote cooperation in the processed food industry, using U.S. raw materials to jointly develop products.
Increase imports from the U.S., including LNG, IT equipment, aircraft, and agricultural products.
Open markets and reduce import tariffs, with an average reduction of 14% on over 11,000 items.
Strengthen laws on product origin to prevent misrepresentation of production sources.
Support Thai investments in the U.S. — currently, there are 70 Thai companies investing in the U.S. with a total value of over $16 billion.

Commerce Minister Pichai Naripthaphan stated that he had been in contact with the USTR since the end of last year and had received a response from the U.S. to begin negotiations this month. Thailand will submit proposals that align with the 5 key pillars mentioned above.

Additionally, Thailand and ASEAN member countries held a special meeting to discuss strategies for handling the U.S. tariff increases. They agreed not to fight back with tariffs, but to focus on positive trade talks under the TIFA and E3 plans. They will also push for trade and investment in potential areas such as digital, renewable energy, food, and AI.

ASEAN is preparing to set up a group called the “ASEAN Geoeconomics Task Force,” to closely monitor U.S. economic policies and develop long-term cooperation strategies within the region.

The U.S. remains ASEAN’s second-largest trading partner and Thailand’s number one export market. In 2024, Thailand’s total trade with the U.S. amounted to $74.484 billion, with exports worth $54.956 billion and imports at $19.528 billion.

Although the trade situation between Thailand and the U.S. needs close attention, the Thai government’s efforts to reduce trade imbalances and create balanced cooperation are an important step for the country’s long-term economic stability