Prime Minister Anutin Charnvirakul announced on Wednesday that Thailand is nearing the finalization of a trade agreement with the United States. Speaking at a forum in Singapore, Mr. Anutin expressed his expectation to sign the Agreement on Reciprocal Trade during President Donald Trump’s upcoming visit to Asia. This visit is anticipated to include stops in Manila for the ASEAN meetings from November 16-18, or in Shenzhen for the Asia-Pacific Economic Cooperation (APEC) summit on November 18-19.
Mr. Anutin revealed he received a letter from President Trump last week, confirming the deal’s advanced status. “He told me that I was to make sure that my people and the United States Trade Representative would write up the final clause,” Mr. Anutin stated.
This development follows the imposition of a 12.5% tariff by the U.S. in July on non-exempt imports from Thailand. This measure was a consequence of findings that Thailand had not adequately addressed the issue of forced labor.
A separate investigation by Washington into production overcapacity, a concern cited for numerous countries, is currently pending. The outcome of this inquiry could potentially impact the final tariff rate.
Another significant concern for the United States involves goods being transshipped to circumvent trade measures. In Thailand’s context, this primarily pertains to products originating from China that are ultimately destined for the U.S. market. In response to requests from U.S. authorities, Thailand has implemented a watch list for products commonly transshipped from China that require scrutiny.
Thailand’s trade deficit has climbed to historic highs this year, largely due to a substantial increase in imports, particularly of capital goods, raw materials, and energy. Kasikorn Research Center has projected that the trade deficit for 2026 could reach $50 billion, marking the highest figure on record since 1991. The United States remains Thailand’s largest export market, representing 24% of the country’s total exports thus far this year.