With Trump Tariff Clock Ticking, Thailand Extends More Concessions To US

Thailand has offered a series of concessions to the U.S. to secure a lenient trade deal as the deadline for Donald Trump's tariffs looms close, according to a Bloomberg report.

The Southeast Asian nation has offered greater market access for U.S. farm and industrial goods, as well as increased purchases of energy and Boeing jets.

Bangkok's proposal aims to boost bilateral trade volume and reduce Thailand's $46 billion trade surplus with the U.S. by 70% within five years, Thailand's Finance Minister Pichai Chunhavajira said in an interview with Bloomberg.

Thailand, which faces a 36% tariff on exports to the U.S., submitted the proposal on Sunday night, just a few of days before the July 9 deadline for duties to revert to April rates. Over the weekend, U.S. officials announced that the deadline has been extended to Aug. 1.

The move follows a meeting on Thursday between Pichai and U.S. Trade Representative Jamieson Greer and Deputy Secretary of the Treasury Michael Faulkender.

"What we're offering them is a mutually beneficial proposal," Pichai said. "The U.S. can trade more with us, and we get to the chance to clean up our process and cut red tape."

Trump's team is engaged in last-minute negotiations with several nations to secure agreements that may lower the high tariff rates he first announced in April. Vietnam struck a deal, with new duties set to 20%, while an agreement with India is reportedly in the final stages.

As part of the proposal, Thai petrochemical companies have pledged to import more U.S. ethane, while Thai Airways has indicated it could buy as many as 80 Boeing (BA) jets in the coming years, according to the Bloomberg report.

U.S. stock futures were in the red early Monday after Trump warned of 10% tariffs on nations aligning with ‘Anti-American’ BRICS policies. 

The SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust (QQQ), exchange-traded funds (ETFs) that track the S&P 500 and the Nasdaq 100 Indexes, were down by over 0.4% and 0.6% premarket, respectively. Still, retail sentiment on Stocktwits was ‘extremely bullish’ for both tickers heading into the fresh trading week.

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