Thailand is thinking about allowing some US goods to enter the country without any import tax (zero-duty market access). They hope this will convince the US government (under President Trump’s administration) not to put a high 36% tariff on Thai products going to America. Thailand’s Finance Minister, Pichai Chunahavajira, said that they might reduce taxes on some US goods, such as longan (a fruit) and tilapia fish, to zero. Thailand has already lowered taxes on these items when imported from other countries before.

The government is also thinking about changing rules so that cars with left-hand drive (which is common in the US) can be brought into Thailand. They may also remove taxes on other goods that are already included in free trade agreements with other countries. The US, however, wants “ambitious proposals” from Thailand, but the minister did not give details on what those are. He said that both countries are still talking and trying to find a fair deal.Thai officials are hopeful that they can make a deal with the US before the August 1 deadline set by President Donald Trump.

Thailand has promised to remove import taxes on 90% of US products and also get rid of other trade barriers that make it harder for US goods to enter the country. Thailand has also agreed to buy more US farm products and energy (like oil and gas) to help reduce its trade surplus with the US. Last year, Thailand’s trade surplus (meaning it exported more to the US than it imported) was $46 billion. In 2024, the US was Thailand’s biggest export market, taking about 18% of Thailand’s total exports. Thai exports have already gone up by about 15% in the first five months of this year, as buyers rushed to order before the new tariffs might start.

Finance Minister Pichai said that some of the US demands are not just about lowering taxes or trade barriers — they also involve political issues. He warned that agreeing to such demands might upset people in Thailand. He added that any trade deal with the US must be fair for both sides and good for Thailand in the long run. Finance Minister Pichai said that the US demands about using more local materials (called local content requirements) won’t affect Thailand much. This is because most Thai exports come from older industries that already use a lot of local materials.

The US has warned that it will put higher taxes (tariffs) on countries that are helping China avoid the trade war by secretly sending Chinese goods through their countries. Recently, former President Trump made a deal with Vietnam, which included a 20% tax on exports and a 40% tax on goods suspected of being sent from China through Vietnam.

Thailand is one of the countries that received a warning letter from the US about possible higher tariffs. Now, Thailand is trying hard to make a deal to avoid these heavy taxes. If Thailand fails to reach a deal and the US imposes high tariffs, it could badly hurt Thai exports. This could also lower Thailand’s expected economic growth by up to 1%.