Thai rice to be hit hard by US tariffs, MP urges action

The rice export sector is being told to brace for impacts from the 36% tariff on imports from Thailand announced by US President Donald Trump, while the government is being urged to negotiate for a lower tariff rate.

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Chadchawan Phaehayatnai, a Roi Et MP of the opposition Thai Sung Thai Party, yesterday predicted a massive impact from the high tariff rate on Thailand's rice export sector, saying hom mali rice, which is very popular in the US, would be particularly hard hit.

As hom mali rice's main export market is the US, at least US$8 billion (274 billion baht) in losses are estimated now, said Mr Chadchawan, who described the situation as a major crisis now facing Thai farmers who form the majority of Thailand's population.

The high tariff rate means the price of hom mali rice from Thailand sold in the US will jump from between US$600 and US$1,000 per tonne to around US$1,400 per tonne, which could make the rice less appealing to price-sensitive buyers, especially when compared with rice from other exporters at a lower price.