Thai Chamber of Commerce, TNSC concerned over US move to suspend tariff talks

Thai Chamber of Commerce worries over US freeze on tariff talks, says 19% duty still applies; shippers warn suspension could hit exporters and urge swift government action

Poj Aramwattananon, chairman of the Thai Chamber of Commerce and the Board of Trade of Thailand, said that following the United States Trade Representative’s (USTR) announcement to suspend bilateral tariff negotiations between Thailand and the United States, the chamber and the private sector are closely monitoring the situation and awaiting full clarity.

Meanwhile, Thanakorn Kasetsuwan, chairman of the Thai National Shippers’ Council (TNSC), said the chances of new tariff talks moving forward have weakened significantly after the USTR explicitly stated that it would “pause further negotiations under the bilateral tariff framework” until Thailand demonstrates full compliance with the Joint Declaration.

He warned that any prolonged delay would be an important economic signal that could affect Thai exporters across multiple dimensions.

Key risks identified by the private sector

1. Loss of preferential tariff opportunities

Thailand could miss out on improved tariff conditions, putting Thai products at a price disadvantage compared with competitors that already have trade agreements with the US.

2. Rising uncertainty for trade and investment

Exporters and investors who rely on the US market may delay investment decisions due to policy risks and uncertainty, disrupting supply chains linked to the US—particularly in electronics, automotive, electrical appliances and food.

3. Declining competitiveness of Thai products

The US accounts for around 18% of Thailand’s total exports. Without more favourable tariff terms, Thai products may lose price competitiveness to rivals such as Vietnam, Mexico and countries with FTAs with the US.

4. Risk of increased US pressure on trade and market access

The US has long expressed concern about its trade balance with Thailand. Stalled negotiations could lead to additional pressure, including calls for greater access for American products, stricter regulatory inspections, and tightened monitoring of transhipment through Thai ports.

5. Slowdown in long-term Thailand–US cooperation

Suspended talks may delay joint plans in technology, digital development, logistics and supply chain cooperation—key elements of Thailand’s strategy to attract high-quality investment and move up the value chain.

Source: Nation Thailand