Trade talks need care

The United States’ recent move to impose reciprocal tariffs under the Trump administration has sent shockwaves through the global economy.

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Thailand, which has the 11th largest trade surplus with the US, is facing a 36% import tariff hike — a development that warrants utmost concern by our policymakers.

The US remains Thailand’s largest export market, with exports reaching a value of 1.93 trillion baht in 2024. The hyper tariff, therefore, is expected to have a serious impact on Thai exports, particularly on the country’s already vulnerable agricultural sector.

Agricultural products form a major component of Thailand’s exports to the United States, which in 2024 were valued at US$1.9 billion — the third largest market, following China and Japan.

Despite these impressive figures, Thailand's agricultural sector continues to struggle with low productivity and efficiency. Rice production, in particular, dominates agricultural land use — covering 65.4 million rai, or 43.7% of all farmland — and engages the largest share of the agricultural workforce, but still delivers relatively low yields compared to global competitors.