Thailand is moving swiftly to secure a trade agreement with the United States before the July 9 deadline when a 36% legislative tariff may be levied on Thai imports. The final negotiation process will take place in the coming week as the Finance Minister, Pichai Chunhavajira, will visit Washington. Pichai has denied the proposed rate, which is widely reported as 18%. In a statement issued on X, he clarified that the 18% figure is an economic model used by the Bank of Thailand during a scenario test, not a final rate agreed upon in the negotiations. This explanation comes amidst the increasing speculation regarding the nature of the talks between the two governments. Wuttikrai Leeviraphan, the Permanent Secretary for Commerce, confirmed that Thailand made an official proposal on June 20 after the technical talks. He stated that the offer has the potential to cut the tariff to the 10% minimum given in April under President Trump’s reciprocal trade framework. Washington signals flexibility but holds leverage President Donald Trump initially announced broad reciprocal tariffs on April 2 against virtually all U.S. trading partners. Although the base level was lowered to 10%, other rates were held for 90 days to enable negotiation. That deadline lapses on July 8, and those nations that will not reach an agreement face possible high duties the following day. White House Press Secretary Karoline Leavitt said on June 26 that the deadlines are not strict. She said the president could stretch them at his discretion or direct deals with individual countries. In this policy, the president can levy rates that he feels profitably serve U.S. employees by merely exercising his will. Howard Lutnick, the Secretary of Commerce, also said that the administration seeks to seal major trade agreements with 10 leading countries within the next few weeks. Thailand, one of the leading exporters in the Southeast Asian region, has been considered one of the countries with the highest priority in this effort. The current negotiations come after the recent agreement on a U.S.-China trade accord in Geneva. Lutnick affirmed that China was also willing to provide rare earth elements that run industries important to those of the United States, such as defense and renewable energy. Washington, in turn, will drop Chinese export countermeasures. The agreement with China may provide an example to some other bilateral agreements that are being developed. EU braces for 50% tariffs as Brussels analyzes US offer Meanwhile, the European Union is being pressured to conclude a trade deal. Trump has threatened to impose a 50% tariff on EU goods beginning July 9. European Commission President Ursula von der Leyen told reporters on Thursday that the EU is ready to strike a deal but is prepared to see out every eventuality. Von der Leyen said the Commission received the latest U.S. proposal and is analyzing its contents following an EU leaders’ summit in Brussels. She emphasized the need to protect European interests if negotiations fail to yield the kind of result that was desirable. Currently, most EU products are exposed to a 10% tariff, and additional rates have already been imposed on automobiles, steel, and aluminum. The Commission is coordinating with member states to step up negotiations with Washington. The diplomatic shift by Thailand coincides with the U.S. transforming the world trade, using direct talks, the threat of tariffs, and accelerated bilateral agreements. Countries that cannot compromise stand to lose preferential access to the world’s largest economy. Your crypto news deserves attention - KEY Difference Wire puts you on 250+ top sites
