Bangkok: EXIM Bank points to the 19% US import tariff rate, a result of the successful negotiations between the Thailand team, supporting the expansion of Thai exports in 2025. Mr. Bandit Sapianchai, Director and Acting President of the Export-Import Bank of Thailand (EXIM BANK), revealed that the successful negotiations by Team Thailand, led by Deputy Prime Minister and Minister of Finance, Mr. Pichai Chunhavajira, resulted in a reduction of the reciprocal tariff rate with the United States to just 19%, lower than many expected. This is a key factor in maintaining Thailand’s competitiveness in the global market. The 19% tariff rate is close to that of major competitors such as Vietnam (20%), and equal to Malaysia, Indonesia, and the Philippines (19%). Japan and South Korea, while receiving lower tariffs (15%), still have higher total production costs.
According to Thai News Agency, Mr. Bandit further revealed that the 19% tariff rate received from the United States will benefit Thailand in attracting foreign investment, enabling it to maintain its production and investment base, including direct investment from the United States, particularly in businesses using advanced technology and innovation. Furthermore, in terms of international trade, Thailand has the opportunity to seize market share from countries with higher tariffs, such as India (25%), Mexico (25%), and Canada (35%).
Mr. Bandit stated that this positive news has a positive impact on the Thai economy and export growth in 2025, as previously projected by EXIM Bank at 0.5-1.5%. This growth is expected to be better than expected, and has greatly eased exporter concerns, despite continued price pressures, particularly for low-margin businesses and SMEs, whose businesses remain vulnerable. Thailand must also exercise its right of origin to avoid the additional 40% tariff imposed on goods transiting through third countries or falsely claiming a country of origin for assembly and transshipment.
Mr. Bandit further stated that EXIM Thailand, as a specialized state-owned financial institution under the supervision of the Ministry of Finance, has consistently provided assistance to customers, promoted, and supported Thai entrepreneurs in businesses related to international trade, ensuring their continued operations. This effort aims to mitigate the impact of the US retaliatory tariffs on Thai entrepreneurs. For example, the EXIM Export Clinic has been established to provide advice and assistance to affected exporters and importers. Remedial measures include extending the debt repayment period by up to 365 days, liquidity enhancement measures, and interest rate reductions. Furthermore, the Bank has expanded cooperation with the Ministry of Commerce and relevant agencies to support entrepreneurs, particularly SMEs, in expanding into new markets with potential.
“I would like to thank Team Thailand for the successful negotiation of tariffs with the US. This is an important step in protecting Thailand’s interests and enhancing its potential on the global economic stage. It also builds confidence among trade partners and enhances the competitiveness of Thai entrepreneurs in the global trade market. This cooperation also reflects the strong and long-standing relationship between Thailand and the US, which has been a constant effort in various areas, including economics, trade, investment, and sustainable development. EXIM Thailand stands ready to work with the public and private sectors alongside Thai entrepreneurs, providing financial support and tools for managing international trade and investment risks in both major and emerging markets, to drive Thailand’s sustainable development in all dimensions,” said Mr. Bandit.