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

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.

Thanakorn said that resolving the Thailand–Cambodia border issue and demonstrating clear compliance with the Joint Declaration would help unlock negotiations, creating opportunities for Thailand to restructure tariffs on priority products, expand US market access and deepen collaboration on supply chains and advanced technology with American firms.

However, he cautioned that the link between border politics, national security and trade could directly affect export stability. Prolonged negotiation delays may result in Thailand losing market share in the US, especially in highly competitive industrial sectors.

Policy recommendations from TNSC

The TNSC urged the government to:

• Expedite government-to-government discussions and provide clear updates on Thailand’s compliance with the Joint Declaration
• Maintain confidence among US investors and trading partners through proactive communication, transparent regulatory measures and policy clarity
• Craft support plans for exporters, including developing alternative markets and maximising the benefits of RCEP and other FTAs
• Strengthen risk management on trade regulations, particularly rules of origin, transhipment, and labour standards
• Closely track developments and coordinate with public- and private-sector bodies to assess impacts and mitigate risks

“The USTR’s decision to suspend talks reflects how international trade is inseparable from geopolitical and security dynamics,” Thanakorn said. “For Thailand, the key concerns are the loss of time and opportunity, the risk of declining export competitiveness, and the urgent need to safeguard export stability while securing alternative markets.”