On June 22, 2025, Thailand finds itself at a critical juncture in its economic and trade relations, particularly with the United States. Against the backdrop of evolving global trade dynamics and shifting geopolitical landscapes, Thai officials and experts are navigating complex negotiations and strategizing to secure the nation’s economic future.
Panpree Phitthanukorn, former Deputy Prime Minister and Foreign Minister of Thailand, shared his insights in an interview with Japan’s Yomiuri Shimbun, shedding light on the ongoing tariff negotiations between Thailand, Japan, and the United States. Panpree described the tariff policy under U.S. President Donald Trump as unexpected, contrasting sharply with America’s historic role as a champion of free trade and supporter of international organizations like the World Trade Organization (WTO) and the International Monetary Fund (IMF).
He explained that the global order is undergoing significant changes due to the rapid expansion of capitalism, even in countries traditionally seen as communist. This shift complicates bilateral negotiations, particularly with the United States, which now imposes high tariffs on its allies to reduce trade deficits or boost profits. Panpree emphasized that Thailand maintains strong ties with both the U.S. and China, understanding that relying solely on one partner could jeopardize national security.
“Trade is important, but relationships are even more crucial,” Panpree remarked, highlighting that these relationships encompass economics, security, culture, society, and geopolitics. He urged Thailand’s tariff negotiation team to bring broader issues to the table and assert Thailand’s strategic importance to the U.S. in the region.
ASEAN, the Association of Southeast Asian Nations, is a key focus for the U.S. due to its substantial trade surplus and export capacity. The U.S. views negotiations with ASEAN as manageable because the bloc depends heavily on the American market. However, Panpree pointed out the diversity within ASEAN, with member countries varying in economic development and political alignment, making unified negotiations challenging. He proposed that ASEAN nations diversify their trade markets to regions such as Africa, South America, and the Middle East.
Drawing historical parallels, Panpree likened the current tariff tensions to the Plaza Accord of the 1980s, when the U.S. pressured Japan to appreciate the yen. Despite the strain, the two countries did not become adversaries. Similarly, the U.S. is now imposing high tariffs on imports from allies like Thailand, particularly on automobiles. Japan, with its significant investments in Thailand through companies like Toyota, Mitsubishi, and Isuzu, is positioned to advocate alongside Thailand against these tariffs, since both nations are affected.
Meanwhile, on the domestic front, Thailand’s Ministry of Commerce is actively steering the country towards what it calls a “Golden Year of Exports.” Phichai Naripthaphan, the Minister of Commerce, delivered a special address at the “Thailand Opportunity, Thailand Stage, World Stage” seminar in Bangkok, marking the 75th anniversary of Siam Rath newspaper. He announced robust export growth as a key driver of Thailand’s economic recovery.
Phichai reported that exports have expanded for four consecutive quarters, with a 10.5% increase in the last quarter of 2024 and a remarkable 14.9% growth in the first five months of 2025. May alone saw an 18.4% surge. Foreign direct investment (FDI) in 2024 reached an impressive 2.58 trillion baht, defying pessimistic forecasts. Under Prime Minister Paetongtarn Shinawatra’s administration, Thai exports have grown by 13.3% over the past eight months, generating over 215 billion U.S. dollars in revenue, equivalent to 7.23 trillion baht.
Phichai confirmed that tariff negotiations with the U.S. have been underway since late last year, with details to be disclosed once finalized. The Ministry of Commerce is also positioning Thailand as a hub for high-tech manufacturing, particularly in semiconductors, printed circuit boards (PCBs), and artificial intelligence hardware, which are seen as the country’s future economic pillars.
Adding value to Thai food products is another priority, leveraging intellectual property rights and geographical indications (GI) to enhance the global image of Thai cuisine. The ministry is actively pursuing free trade agreements (FTAs), aiming to conclude one with the European Union this year, while negotiations continue with South Korea, ASEAN-Canada, and the United Arab Emirates to expand trade opportunities.
Addressing agricultural market challenges, particularly the oversupply of fruits, the ministry has implemented seven proactive measures and 25 action plans. One innovative approach involves partnering with AirAsia to incorporate over 1,000 tons of agricultural produce into in-flight meals and beverages. Retail promotions and national fruit festivals are also being organized to boost domestic and international sales.
The ministry has rebranded the “Thai SELECT” project, which certifies Thai restaurants abroad, elevating its status to be comparable with Michelin Star ratings. This initiative aims to strengthen the connection between Thai cuisine and tourism, with promotional events planned in New York next month.
To enhance market access, the Ministry of Commerce plans to link provincial commercial offices with trade attachés, facilitating direct export opportunities for local products. Additionally, the ministry is developing a comprehensive e-commerce application to streamline trade processes.
Phichai acknowledged ongoing challenges in agricultural sectors such as rice and cassava, which face global price pressures. Efforts to open new markets, like South Africa, and negotiate rice sales are underway to maintain Thailand’s competitive edge and price stability. The ministry is also cracking down on low-quality products and illegal businesses, having processed over 57,700 cases and investigating nearly 47,000 companies nationwide.
Expressing confidence in Thailand’s economic trajectory, Phichai urged national unity and support for the government’s initiatives to avoid past stagnation. He forecasted export growth exceeding 10% this year, contingent on continued collaboration across all sectors.
In sum, Thailand is navigating a complex web of international trade tensions, domestic economic revival, and strategic diversification. The collaborative efforts between Thailand and Japan in tariff negotiations with the U.S. underscore the interconnectedness of regional economies facing global challenges. At the same time, Thailand’s assertive push towards high-tech industries, expanded trade agreements, and agricultural innovation signal a determined path toward sustainable growth and resilience in an unpredictable world.
