Thailand has submitted latest trade proposal to United States, finance minister says

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BANGKOK (Reuters) -Thailand has submitted its latest trade proposal to the United States, its finance minister Pichai Chunhavajira said on Monday, as it tries to head off steep tariffs from its largest export market. 

 Washington has threatened to impose a 36% levy on imports from Thailand if a reduction cannot be negotiated before July 9, when a 90-day pause capping tariffs at a baseline of 10% for most nations expires.

The United States accounted for 18.3% of Thailand’s shipments last year, or $54.96 billion. Washington has put its deficit with Thailand at $45.6 billion.

“We heard their feedback and what what they were especially interested in and we adjusted it,” said minister Pichai Chunhavajira, who returned from Washington last week following talks.

He said there could be other adjustments in future. 

Thailand’s top three exports to the United States last year were computers, teleprinters and telephone sets, and rubber products. Its top three imports from the U.S. were crude oil, machinery and parts, and chemicals. 

Thai state-owned energy giant, PTT Group in June signed an agreement to procure 2 million metric tons of liquefied natural gas per year from Glenfarne’s Alaska LNG project over a 20-year term. The $44 billion project has been championed by U.S. President Donald Trump.

Pichai earlier said Southeast Asia’s second-largest economy could expand by just over 1% this year due to the impact of U.S. tariffs. 

Thailand’s economy has struggled with weak consumption, soaring household debt, slowing tourism, trade uncertainty and potentially steep U.S. tariffs.

Last month, the central bank forecast economic growth of 2.3% this year, after last year’s growth of 2.5% lagged peers in the region.

(Reporting by Orathai Sriring and Thanadech Staporncharnchai, Writing by Chayut Setboonsarng, Editing by David Stanway, Martin Petty)