BANGKOK (Reuters) – Thailand will increase U.S. imports, lower some of the higher taxes on American goods and address non-tariff barriers, the finance minister said on Tuesday, as the government seeks to negotiate a better deal on new U.S. tariffs.
The tariff of 36% imposed on Southeast Asia’s second-largest economy is among the higher rates imposed by the administration of U.S. President Donald Trump, greater than officials had anticipated.
Thailand was in no rush to travel to the United States for negotiations because proposals needed time to prepare, said Pichai Chunhavajira, who will head Thai negotiations.
He said Thailand would seek to balance trade with the United States within 10 years.
Prime Minister Paetongtarn Shinawatra on Tuesday said a meeting between Thailand and the United States Trade Representative had been confirmed, but gave no further details.
Thai exporters should also seek new markets to diversify risks, she said, adding the government would have relief measures for businesses hit by the tariffs.
The tariffs could knock a percentage point from growth this year in the export-reliant country, Pichai said.
Before the steep tariff was announced, the government was targeting growth of 3% this year, after last year’s 2.5% expansion, a rate far adrift of most of its regional peers.
The government has said it would import more U.S. goods, such as corn, soybeans, crude, ethane, liquefied natural gas, autos and electronics, and aircraft, and would review rules on imports of U.S. pork.
Thailand had a trade surplus with the United States of $35.4 billion last year, according to government data, while Washington has put its deficit with Thailand at $45.6 billion.
Thailand’s benchmark stock index fell as much as 6.1% on Tuesday, the first trading day since the tariffs announcement.
On Monday, the Stock Exchange of Thailand announced temporary floor and ceiling limits on stock movement to trading to 15% from 30% and a ban on short selling to reduce volatility.
(Reporting by Orathai Sriring, Kitiphong Thaichareon, Thanadech Staporncharnchai, Panarat Thepgumpanat, Chayut Setboonsarng; Editing by John Mair, Martin Petty)
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