Thai Prime Minister: We will negotiate with the United States on a 36% reciprocal tariff, and we are ready to take countermeasures
Background: The trade earthquake caused by the 36% reciprocal tariff
On April 3, 2024, Thai Prime Minister Petunthan Shinawatra held an emergency press conference to respond strongly to the US Department of Commerce's announcement of a 36% "reciprocal tariff" on Thai auto parts, rubber products and other goods exported to the United States. The US claimed that this move was aimed at correcting Thailand's "unfair agricultural subsidy policy", but in fact it was aimed at Thailand's rise in the electric vehicle industry chain, semiconductor packaging and testing and other fields - Thailand's exports of high-tech products to the United States surged by 42% in 2023, with hard disk drives accounting for 58% of the global market share. Petunthan announced three countermeasures: restructuring the import tax structure on the United States, setting up an inter-departmental negotiation working group, and launching emergency consultations with RCEP member countries. This tariff offensive and defensive battle is not only about the bilateral trade between Thailand and the United States (annual scale of about US$45 billion), but also reflects the survival wisdom of the Southeast Asian manufacturing hub in the fission of globalization.