US-Thai agricultural trade talks stall over 1,855 products
Negotiations on tariffs and standards for 1,855 Thai agricultural products remain unresolved as the US imposes 19% reciprocal tariffs, prompting further rounds of discussion.
Following Thailand’s notification from the United States that Thai exports would be subject to a 19% reciprocal tariff, negotiations remain ongoing. Both sides are currently exchanging views on product standards and non-tariff measures (NTMs), with each party reviewing details before further rounds are held to reach a final agreement.
Chantanon Wannakhajorn, Secretary-General of the Office of Agricultural Economics (OAE) and spokesperson for the Ministry of Agriculture and Cooperatives, explained that Thailand normally applies import duties on US products at an average of 15ข20%. Under the current framework, Thailand would waive or reduce tariffs on over 10,000 US products, of which 1,855 are agricultural goods.
“Each country has different standards, and we must explain why these standards are necessary. The other side asks if adjustments are possible. This is a preliminary stage of full-scale negotiations. While discussions via online Zoom calls are relatively short, they are not yet concluded and will continue,” Chantanon said.
At present, the US has increased tariffs on Thai imports to 19%, but has not offered reciprocal concessions. The US aims for zero tariffs on US goods entering ASEAN to enhance competitiveness. Thailand has already reduced or zero-rated several US agricultural imports to remain competitive, whereas historically some US agricultural imports, such as beef, faced tariffs above 50%.
Chantanon added that Thailand is not alone in these ongoing detailed negotiations with the US, as other countries also have unique issues. While all parties are still negotiating, the fact that partners are willing to engage is considered a win for the US. For Thailand, the increased 19% tariff will reduce exports to the US due to higher costs, ultimately affecting US consumers who will face higher prices.
“Thai exports, particularly agricultural products, rely on five main markets: ASEAN, China, the US, Europe, and Japan. We have consistently emphasised the need to develop new markets to reduce risk. High-potential new markets include Africa, so we must support our businesses to expand there,” Chantanon concluded.
A recent survey conducted by the Associated Press-NORC Center for Public Affairs Research found that 90% of American workers feel increased stress due to rising food prices, particularly for poultry, ground beef, and chicken eggs, which have seen significant price hikes. Similarly, coffee farmers benefit from the higher import tariffs, especially those in Hawaii—the only US state that produces tropical coffee.
However, the US coffee tariff on imports previously sourced from Brazil and Vietnam is expected to reduce coffee consumption in the United States, leading consumers to turn to energy drinks instead. The tariff is also projected to reduce Starbucks’ profits by 1.4%. The National Coffee Association has urged President Donald Trump to reconsider the measure, noting that coffee cannot be grown nationwide but remains a highly popular commodity, with Americans consuming an average of three cups per person per day.
