Bangkok: The Federation of Thai Industries (FTI) pointed out that the 36% tax rate is higher than Malaysia and Vietnam, reflecting that Thailand is at a competitive disadvantage. It estimates the damage to the value of Thai exports at 800-900 billion baht. It believes that the additional proposals that Thailand has submitted to the United States in the second round will have a positive effect.
According to Thai News Agency, the United States has officially announced that it will start collecting import taxes from Thailand at a rate as high as 36% covering all types of products from August 1, 2025, onwards, which is considered an anti-dumping tax rate higher than the private sector has estimated and higher than many competing countries in the region such as Vietnam (20%), Indonesia (32%), and Malaysia (25%).
Mr. Kriangkrai Thienukul, Chairman of the Federation of Thai Industries (FTI), said that the initial decision by the United States may affect the Thai export sector, especially industries with the United States as a major trading partner, such as processed food, agricultural products, automobiles and parts, electrical appliances, electronic devices, textiles, gems, steel, and aluminum. It is estimated that the damage to Thai exports may be approximately 800-900 billion baht.
‘Although Thailand’s first proposal was sent on July 6 and signed on the morning of July 7, which may contradict the US announcement, Thailand has now sent a second proposal, which is different from the first proposal, especially in terms of the number of products to be reduced to zero tariffs, which number in the thousands. However, after we sent the additional proposal, there has been no response. However, we believe that if the US reconsiders this new additional proposal, it should have a positive effect,’ said Mr. Kriangkrai.
In this uncertain situation, the FTI will hold an urgent internal meeting with 47 industrial groups in 11 clusters first to assess the impact on each group and develop appropriate support measures. After that, on behalf of the Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB), we will urgently meet with the government and relevant agencies to find further support measures.