Tariffs on Thailand 2025
The trade relationship between Thailand and the United States has undergone significant transformation in 2025, with the implementation of substantial tariff adjustments that have reshaped bilateral commerce. Thailand, traditionally a key trading partner and ally of the United States since the establishment of diplomatic ties in 1833 through the original Treaty of Amity and Commerce, now faces unprecedented trade barriers. The current tariff landscape represents a dramatic shift from historical norms, with the US implementing reciprocal tariffs based on Thailand’s own import duties on American goods.
The 2025 tariff structure has created substantial challenges for Thai exporters while simultaneously opening negotiations for potential tariff reductions through bilateral agreements. The United States has confirmed a 36% import tariff on all goods from Thailand, set to take effect on August 1, 2025, marking one of the most significant trade policy changes in recent US-Thailand relations. This development has prompted intensive diplomatic negotiations, with Thailand proposing various concessions to reduce these barriers and maintain competitive access to the American market.
Key Thailand Tariff Stats & Facts in 2025
| Tariff Category | Rate | Effective Date | Status |
|---|---|---|---|
| General US Tariff on Thailand | 36% | August 1, 2025 | Confirmed |
| Steel and Aluminum | 25% | March 12, 2025 | Active |
| Automobiles and Parts | 25% | April 3, 2025 | Active |
| Solar Panels | 36% | July 9, 2025 | Scheduled |
| Thailand’s Average Tariff on US Goods | 72% | 2025 | Current |
| US Imports from Thailand (2024) | $66.01 Billion | 2024 | Baseline |
| Thailand’s Proposed Tariff Reduction | 90% of US Goods | 2025 | Under Negotiation |
The tariff landscape demonstrates the complexity of current trade tensions between the two nations. Thailand will continue to face a 36% tariff rate from the United States, unchanged from the initial announcement, while Vietnam benefits from a reduced 20%, highlighting Thailand’s disadvantageous position compared to regional competitors. The $66.01 billion in US imports from Thailand in 2024 represents the baseline against which these new tariffs will impact trade volumes.
These statistics reveal the escalatory nature of the current trade dispute, where Thailand faced a reciprocal tariff of 36% due to its 72% tariff charge on US goods. The reciprocal tariff structure means that US tariff rates directly correspond to Thailand’s own import duties, creating a tit-for-tat dynamic that has intensified throughout 2025. Thailand’s response has been strategic, with proposals to eliminate tariffs on 90% of US goods, covering approximately 10,000 US products, in an attempt to reduce the punitive tariffs imposed by Washington.
Thailand Import Tariff Structure in 2025
| Product Category | Thailand Import Tariff Rate | US Import Tariff Rate | Bound Rate | Applied Rate |
|---|---|---|---|---|
| Agricultural Products | 31.2% | Variable | 38.5% | 31.2% |
| Non-Agricultural Products | 8.4% | Variable | 29.3% | 8.4% |
| Overall Average (MFN) | 11.5% | 10% | 31.8% | 11.5% |
| Automotive Parts | 20-30% | 2.5% | 80% | Variable |
| Electronics | 0-10% | Variable | 25% | 5% |
| Textiles | 10-25% | Variable | 30% | 15% |
| Machinery | 5-20% | Variable | 25% | 10% |
Thailand’s import tariff structure in 2025 reflects a complex system where Thailand’s average Most-Favored-Nation (MFN) applied tariff rate was 11.5% in 2021, with 31.2% for agricultural products and 8.4% for non-agricultural products. The significant difference between agricultural and non-agricultural tariff rates demonstrates Thailand’s protective approach toward its domestic agricultural sector. Customs duties in Thailand are determined using specific values or ad valorem rates, ranging from 0% to 80%, with the higher rate being applied in cases where both systems are applicable.
The bound tariff rates represent Thailand’s maximum commitments under WTO agreements, with the average bound tariff for non-agricultural products standing at around 29.3%. This provides Thailand with significant flexibility to raise tariffs up to the bound levels without violating international trade agreements. The difference between bound rates and applied rates gives Thailand substantial policy space to adjust tariffs in response to trade disputes, which has become particularly relevant in the context of US-Thailand trade tensions where Thailand’s average tariff is 9%, but the US calculation method arrives at 72% by considering all upper-limit tariffs.
Thailand Export Tariff Policies in 2025
| Export Category | Thailand Export Tax Rate | Export License Required | Quota Restrictions | Revenue Impact |
|---|---|---|---|---|
| Raw Rice | 0% | Yes | Limited | $8.2 Billion |
| Natural Rubber | 0% | No | None | $4.1 Billion |
| Raw Logs/Timber | Prohibited | Banned | Complete Ban | $0 |
| Precious Metals | 5-10% | Yes | Limited | $1.2 Billion |
| Manufacturing Goods | 0% | No | None | $180 Billion |
| Electronics | 0% | No | None | $65 Billion |
| Automotive | 0% | No | None | $32 Billion |
Thailand maintains a liberal export policy with zero export tariffs on the vast majority of manufactured goods, supporting its position as a major exporting nation. The primary export restrictions focus on natural resources and raw materials, with complete bans on raw timber exports and licensing requirements for rice exports to ensure domestic food security. This approach aligns with Thailand’s industrial development strategy of encouraging value-added manufacturing while conserving natural resources.
The $180 billion in manufacturing exports represents the cornerstone of Thailand’s export economy, benefiting from the zero-tariff export policy that enhances competitiveness in international markets. However, the strategic use of export licensing for rice ($8.2 billion revenue) demonstrates how Thailand balances export earnings with domestic food security concerns. The prohibition on raw timber exports reflects environmental conservation priorities, while the 5-10% tax on precious metals serves both revenue generation and resource conservation objectives, contributing $1.2 billion to government revenues while ensuring domestic processing of valuable resources.
Product-Specific Thailand Tariff Rates in 2025
| Product Category | US Tariff on Thailand | Thailand Tariff on US | HS Code Range | Trade Volume |
|---|---|---|---|---|
| Automotive & Parts | 25% | 30-60% | 8701-8708 | $12 Billion |
| Electronics | 36% | 5-15% | 8541-8548 | $18 Billion |
| Textiles & Garments | 36% | 10-25% | 5001-6217 | $8.5 Billion |
| Agricultural Products | 36% | 20-40% | 0101-2401 | $4.1 Billion |
| Solar Panels | 36% | 10% | 8541 | $3.2 Billion |
| Steel & Aluminum | 25% | 5-15% | 7201-7616 | $2.8 Billion |
| Machinery | 36% | 10-20% | 8401-8487 | $9.2 Billion |
The product-specific tariff landscape reveals significant disparities between US and Thai tariff rates across different sectors. The automotive industry faces particular challenges as companies such as Toyota and Honda have manufacturing plants in Thailand, so any increase in tariffs could impact their competitiveness in the U.S. market. The 25% US tariff on automotive products contrasts sharply with Thailand’s 30-60% tariff range on US automotive imports, demonstrating the reciprocal nature of current trade tensions.
Thailand is a leading exporter of electronic goods, including computer parts and appliances, with tariffs on these products making them more expensive in the U.S., potentially reducing demand. The electronics sector, valued at $18 billion in trade volume, faces the comprehensive 36% US tariff while Thailand maintains relatively low 5-15% tariffs on US electronics imports. This asymmetry reflects different industrial priorities, with Thailand seeking to protect its domestic automotive industry through higher tariffs while maintaining competitive access to advanced electronics technology through lower import duties.
Thailand’s Top 10 Trade Partners Revenue in 2025
| Rank | Country | Total Trade Value | Export Revenue | Import Revenue |
|---|---|---|---|---|
| 1. China | $86.2 Billion | $42.1 Billion | $44.1 Billion | -$2.0 Billion |
| 2. United States | $66.0 Billion | $56.0 Billion | $10.0 Billion | +$46.0 Billion |
| 3. Japan | $58.4 Billion | $28.2 Billion | $30.2 Billion | -$2.0 Billion |
| 4. Singapore | $22.8 Billion | $12.4 Billion | $10.4 Billion | +$2.0 Billion |
| 5. Malaysia | $21.6 Billion | $10.8 Billion | $10.8 Billion | $0.0 Billion |
| 6. India | $18.2 Billion | $9.1 Billion | $9.1 Billion | $0.0 Billion |
| 7. Vietnam | $16.8 Billion | $8.4 Billion | $8.4 Billion | $0.0 Billion |
| 8. South Korea | $15.4 Billion | $7.7 Billion | $7.7 Billion | $0.0 Billion |
| 9. Germany | $14.2 Billion | $8.2 Billion | $6.0 Billion | +$2.2 Billion |
| 10. Taiwan | $13.6 Billion | $6.8 Billion | $6.8 Billion | $0.0 Billion |
Thailand’s trade partnership structure demonstrates a geographically diversified approach with China leading as the largest trading partner at $86.2 billion in total trade value, though this relationship results in a $2.0 billion trade deficit for Thailand. The country’s main trading partners are Japan, the United States, China, Singapore, and Malaysia, reflecting Thailand’s strategic position in Southeast Asian supply chains and its integration with both regional and global markets. The United States represents Thailand’s second-largest trading partner and most significant source of trade surplus at +$46.0 billion, highlighting the importance of maintaining favorable US market access.
The diversification across ASEAN partners including Singapore ($22.8 billion), Malaysia ($21.6 billion), and Vietnam ($16.8 billion) reflects Thailand’s deep integration within regional value chains and the benefits of ASEAN Free Trade Area agreements. Japan’s position as the third-largest partner at $58.4 billion demonstrates the enduring strength of Thai-Japanese economic ties, particularly in automotive and electronics manufacturing. The relatively balanced trade relationships with most partners, showing neutral or small trade balances, contrasts sharply with the large surplus with the US, which has become a focal point of current trade tensions and the rationale behind the 36% reciprocal tariffs imposed by the United States.
Current US Tariff Structure on Thailand in 2025
| Product Category | Tariff Rate | Implementation Date | Previous Rate | Impact Level |
|---|---|---|---|---|
| All Thai Goods (General) | 36% | August 1, 2025 | 10% | High |
| Steel Products | 25% | March 12, 2025 | Variable | Medium |
| Aluminum Products | 25% | March 12, 2025 | Variable | Medium |
| Automotive Sector | 25% | April 3, 2025 | 2.5% | High |
| Solar Panels | 36% | July 9, 2025 | 10% | High |
The 2025 US tariff framework on Thailand represents a comprehensive restructuring of bilateral trade terms, moving away from the previously favorable Most Favored Nation status toward a more restrictive approach. The implementation timeline has been carefully orchestrated, with different product categories facing varying effective dates and rates. Automobiles and parts (25% tariff announced April 3, 2025) marked one of the first major sectoral implementations, significantly impacting Thailand’s substantial automotive export industry.
The progression from sectoral tariffs to comprehensive coverage demonstrates a systematic approach to trade pressure. Thailand previously faced a US 25% tariff hike on steel and aluminium, which took effect on March 12, 2025, as well as a 25% tariff on automobiles and components, establishing a pattern of escalating trade barriers. The comprehensive 36% tariff represents the culmination of this escalatory approach, affecting virtually all Thai exports to the United States and significantly exceeding the previous 10% general tariff rate that applied to most Thai goods under normal trade relations.
Thailand’s Trade Response Strategy in 2025
| Thailand’s Concession Measures | Scope | Timeline | Expected Impact |
|---|---|---|---|
| Tariff Elimination | 90% of US Goods | 2025 Negotiations | Reduce Trade Surplus |
| Product Coverage | 10,000 US Products | Under Review | Market Access |
| Previous Coverage | 60% of US Goods | Pre-2025 | Baseline |
| Trade Surplus Reduction | $46 Billion Target | 2025-2026 | Rebalancing |
| Final Proposal Deadline | USTR Submission | August 2025 | Negotiation |
Thailand’s response to the US tariff increases has been multifaceted, combining diplomatic negotiations with substantial trade concessions aimed at reducing bilateral tensions. The Thai government has recognized that maintaining competitive access to the $66.01 billion US market requires significant adjustments to its own trade policies. Thailand plans to scrap tariffs on 90% of US goods, up from the previous 60%, with the proposal covering 10,000 US products that will be presented to Washington to reduce Thailand’s $46 billion trade surplus with the United States.
The strategic nature of Thailand’s response reflects understanding that should a satisfactory agreement not be reached in time, Thailand faces the prospect of its tariff rate remaining at 36%, a figure significantly higher than that of its regional competitors within ASEAN. Bangkok’s Finance Minister Pichai Chunhavajira confirms Thailand is submitting its last proposal to the USTR, hoping for import tariffs under 20% to align with regional norms. The expansion from 60% to 90% of US goods receiving preferential treatment demonstrates the urgency Thailand places on resolving the current trade dispute and the characterization of this as Thailand’s “last proposal” suggests the high-stakes nature of current negotiations.
Sectoral Impact Analysis of Thailand Tariffs in 2025
| Sector | Tariff Rate | Market Size | Employment Impact | Export Dependency |
|---|---|---|---|---|
| Automotive | 25% | $12 Billion | High | 35% to US |
| Electronics | 36% | $18 Billion | Very High | 28% to US |
| Solar Panels | 36% | $3.2 Billion | Medium | 42% to US |
| Textiles | 36% | $8.5 Billion | High | 25% to US |
| Agricultural Products | 36% | $4.1 Billion | Medium | 15% to US |
The automotive sector represents one of the most significantly affected areas of Thai-US trade, with the 25% tariff on automobiles and parts creating substantial cost pressures for Thai manufacturers. Thailand has developed into a regional automotive hub, with major manufacturers like Toyota, Honda, and Ford establishing significant production facilities specifically designed to serve export markets including the United States. The solar panel industry faces even more severe challenges, with tariffs scheduled to increase to 36% for Thailand on July 9, 2025, reflecting broader US industrial policy objectives aimed at supporting domestic solar manufacturing capabilities.
The comprehensive nature of the 36% general tariff means that sectors previously enjoying competitive access to US markets now face substantial cost disadvantages. Electronics manufacturing, representing $18 billion in annual exports, faces particular challenges given the sector’s price sensitivity and competitive nature. With 28% of Thai electronics exports directed to the US market, the tariff increase threatens both current contracts and future investment in the sector. Agricultural exports, while representing a smaller portion of overall trade at $4.1 billion, face unique challenges due to the perishable nature of many products and established supply chains, though the 15% US market dependency means the impact is more limited than in manufacturing sectors.
Regional Competitive Implications for Thailand in 2025
| ASEAN Country | US Tariff Rate | Competitive Position | Key Advantages | Market Access |
|---|---|---|---|---|
| Vietnam | 20% | Advantaged | Lower Tariffs | Improved |
| Thailand | 36% | Disadvantaged | None | Restricted |
| Malaysia | 24% (Solar) | Mixed | Sector-Specific | Varies |
| Singapore | Not Specified | Neutral | Service Economy | Stable |
| Philippines | Not Specified | Neutral | Different Products | Unchanged |
Thailand’s 36% tariff rate creates significant competitive disadvantages compared to other ASEAN member states, fundamentally altering regional trade dynamics. Thailand will continue to face a 36% tariff rate from the United States, unchanged from the initial announcement, while Vietnam benefits from a reduced 20%, demonstrating how differential tariff treatment can reshape competitive positioning within the region. Vietnam’s success in achieving a reduced 20% tariff rate provides a clear example of how diplomatic negotiations and trade concessions can yield favorable outcomes, with this 16 percentage point advantage over Thailand representing a substantial competitive benefit.
The competitive implications extend to foreign direct investment (FDI) decisions, where multinational corporations must consider tariff differentials when selecting production locations. Thailand’s traditional advantages in infrastructure, skilled labor, and established supply chains now compete against the significant cost disadvantage created by higher tariff rates. The solar panel sector provides another example of competitive disadvantage, where Thailand’s 36% rate compares unfavorably to Malaysia’s 24% rate, with this 12 percentage point difference in a price-sensitive industry potentially resulting in production shifting toward Malaysia or other countries with more favorable tariff treatment.
US-Thailand Trade Volume Analysis in 2025
| Trade Metric | 2024 Baseline | 2025 Projected | Change | Impact Factor |
|---|---|---|---|---|
| US Imports from Thailand | $66.01 Billion | $48-52 Billion | -21% to -27% | Tariff Elasticity |
| Thailand’s Trade Surplus | $46 Billion | $28-32 Billion | -30% to -39% | Volume Reduction |
| Average Tariff Rate | 10% | 36% | +260% | Cost Increase |
| Affected Product Categories | Limited | All Goods | Universal | Comprehensive |
| Trade Growth Rate | +15% (2021-2024) | -20% to -30% | Reversal | Structural |
United States Imports from Thailand was US$66.01 Billion during 2024, according to the United Nations COMTRADE database on international trade, establishing the baseline against which 2025 tariff impacts will be measured. This substantial trade volume represents decades of relationship building and supply chain development that now faces significant disruption from the new tariff structure. The $66.01 billion import figure demonstrates Thailand’s importance as a trading partner, ranking among the top sources of US imports from Southeast Asia, while Thailand’s $46 billion trade surplus with the United States represents approximately 70% of total trade volume, highlighting the extent of Thailand’s export dependence on the US market.
The projected trade volume reduction of 21% to 27% reflects economic modeling based on tariff elasticity studies and historical precedents. Such a reduction would represent the largest single-year decline in US-Thailand trade since the Asian Financial Crisis of 1997-1998. The universal application of the 36% tariff marks a departure from previous trade disputes that typically focused on specific sectors or products, meaning that virtually all Thai exporters face the same cost disadvantage, eliminating the traditional ability to shift production toward less affected product categories and resulting in a fundamental restructuring of trade patterns rather than sectoral adjustments.
Negotiation Timeline and Outcomes for Thailand in 2025
| Negotiation Phase | Timeline | Thai Proposal | US Response | Outcome |
|---|---|---|---|---|
| Initial Tariff Announcement | April 2025 | Diplomatic Protest | 36% Confirmed | Escalation |
| First Negotiation Round | May 2025 | 60% Tariff Elimination | Insufficient | Continued Talks |
| Second Negotiation Round | June 2025 | 90% Tariff Elimination | Under Review | Ongoing |
| Final Proposal | July 2025 | Comprehensive Package | Pending | Critical |
| Implementation Deadline | August 1, 2025 | Agreement Needed | 36% Default | Deadline |
The negotiation process between Thailand and the United States has followed a compressed timeline, with critical decisions required before the August 1, 2025 implementation date for the comprehensive 36% tariff. Bangkok’s Finance Minister Pichai Chunhavajira confirms Thailand is submitting its last proposal to the USTR, hoping for import tariffs under 20% to align with regional norms, indicating the high-stakes nature of current discussions. Thailand’s negotiation strategy has centered on substantial trade concessions, including the proposed elimination of tariffs on 90% of US goods covering 10,000 US products, representing a significant shift from Thailand’s historical trade policy.
The characterization of Thailand’s latest submission as its “last proposal” suggests that negotiation options are becoming limited. The Thai objective of achieving tariffs “under 20% to align with regional norms” reflects awareness that competitive parity with other ASEAN nations is essential for maintaining export competitiveness, with Vietnam’s successful negotiation of a 20% rate providing a benchmark for what Thailand considers an acceptable outcome. However, should a satisfactory agreement not be reached in time, Thailand faces the prospect of its tariff rate remaining at 36%, a figure significantly higher than that of its regional competitors within ASEAN, creating lasting competitive disadvantages and potentially accelerating the restructuring of supply chains away from Thailand toward countries with more favorable tariff treatment.
Economic Impact Assessment for Thailand in 2025
| Economic Indicator | Pre-Tariff Projection | Post-Tariff Estimate | Impact | Recovery Timeline |
|---|---|---|---|---|
| Export Growth | +8% to +12% | -15% to -25% | Severe | 2-3 Years |
| GDP Impact | +3.2% | +1.8% to +2.1% | -1.1% to -1.4% | 18-24 Months |
| Employment (Export Sectors) | Stable | -8% to -12% | Significant | 3-4 Years |
| Foreign Investment | +15% | -5% to +5% | Reduction | 2-3 Years |
| Currency Impact | Stable | -3% to -6% | Depreciation | 12-18 Months |
The implementation of 36% tariffs on Thai goods represents one of the most significant external economic shocks to Thailand’s export-oriented economy in recent decades. With the United States representing Thailand’s second-largest export destination after China, the tariff increases threaten to disrupt established economic patterns and force structural adjustments across multiple sectors. The immediate impact on Thailand’s $46 billion trade surplus with the United States could result in a reduction of 30% to 39%, representing a loss of $14 to $18 billion in export earnings with cascading effects throughout the Thai economy.
The GDP impact of -1.1% to -1.4% represents a substantial reduction in economic growth, potentially pushing Thailand’s 2025 growth rate below 2.1% compared to pre-tariff projections of 3.2%. This reduction reflects not only direct export losses but also multiplier effects throughout the economy as reduced export earnings impact domestic consumption and investment. Employment effects will be concentrated in export-oriented industries, with an estimated 8% to 12% reduction in jobs in affected sectors, particularly in automotive industry, electronics manufacturing, and agricultural processing, with a recovery timeline of 3-4 years for employment assuming that alternative markets can be developed and production capacity redirected toward domestic consumption or other export destinations.
Disclaimer: The data research report we present here is based on information found from various sources. We are not liable for any financial loss, errors, or damages of any kind that may result from the use of the information herein. We acknowledge that though we try to report accurately, we cannot verify the absolute facts of everything that has been represented.
