Importers in the United States have temporarily halted their orders while they wait for clearer guidelines now that reciprocal tariffs have taken effect on many trading partners including Thailand, according to the Thai Chamber of Commerce.
Poj Aramwattananont, the chairman of the chamber, said that neither Thai exporters nor US importers know who will bear the increased costs arising from the tariffs.
The burden typically falls on importers because the levy stems from a US policy, he said. However, exporters remain concerned about disruptions to orders in April and May and the status of goods already in transit.
According to the White House, the reciprocal tariffs — 36% in Thailand’s case — will apply to all US-bound shipments not loaded in the country of origin by April 9, the date they took effect.
The chamber noted that a similar timeline was announced when the 10% baseline tariff took effect on April 5: shipments had to reach the US by May 27 to avoid additional tariffs.
The prevailing hesitation and uncertainty has slowed exports, especially as Thai exporters strive to continue selling their products to the United States. Negotiations are crucial to move forward, said Mr Poj.
“Most Thai exporters are anxious, particularly regarding already agreed upon transactions with set prices. There is uncertainty about whether they can fulfil these orders,” he said.
“The 36% tariff announced by US President Donald Trump on Thai goods could increase consumer prices in the US, weaken purchasing power and impact future orders.”
He said the tariffs created uncertainty about the potential damage to Thai exports, with ongoing questions regarding whether exports of existing inventory to the US are even viable and the timing of new orders.
Mr Poj said the private sector is pleased with the government’s five-point plan for addressing the new Trump trade policies, as it aligns with proposals the business community has been discussing since the new US president took office.
Key areas requiring government intervention include addressing non-tariff barriers such as agricultural hygiene standards and legal trade barriers, he said.
Moreover, there is a need for stricter enforcement of rules of origin to prevent transshipment fraud, ensuring goods genuinely originate from Thailand.
He said the Department of Foreign Trade has already tightened regulations on 49 critical product categories.
To address these issues effectively, Mr Poj proposed the creation of a Team Thailand led by the prime minister and comprising relevant government agencies and private sector representatives. This collaborative team would analyse and address trade challenges, not only with the US but on a global scale. The team could further delegate tasks to subcommittees for specific issues.
He said separate negotiation teams could be set up for talks on specific issues. The US is keen on seeing Thailand import goods from four key sectors: energy, agriculture and food, airplanes and weaponry.
Each negotiation will involve tradeoffs, and sectors that are negatively affected might require compensation or assistance, he said.
