Export hopes run thin

A letter issued by US President Donald Trump on Monday regarding trade tariffs has been a rude awakening for Thailand.

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In his latest announcement, Mr Trump has stated that Thai exporters will be required to pay a 36% tariff on goods sold in the US. Under the past trade framework, goods exported from Thailand to the US were subject to an average 10% tariff.

The levy — part of the “Liberation Day” tariffs — was first introduced by the US president in April. Trading countries were given three months to negotiate with the United States.

Now the stage has been set, with many nations, including Japan and South Korea, finding themselves in a new playing field.

Mr Trump's letter shows that Thailand's offerings — such as promises to import LNG for two decades and purchase Boeing commercial planes and weapons — were not attractive enough for Washington.

However, the window for negotiations remains open until Aug 1, when the new tariff becomes active. Thailand can only hope that its negotiating team will refine its tactics and return with positive news.