Thailand has submitted a new trade proposal to the United States aimed at addressing the trade imbalance and strengthening bilateral trade relations. The proposal, led by Finance Minister Pichai Chunhavajira, includes reducing import tariffs on approximately 90% of U.S. goods to zero. This move seeks to preempt the 36% tariff on Thai imports announced by the Trump administration, which is scheduled to take effect on August 1, 2025. Thailand remains optimistic about securing a tariff rate lower than the planned 36% levy and aims to finalize the agreement before the August deadline. The Trump administration has indicated a willingness to reconsider the tariff if Thailand enhances U.S. market access by lowering tariffs and non-tariff barriers. Former Prime Minister Srettha Thavisin expressed hope that the tariff could be reduced to at least 20%, comparable to the rate applied to Vietnam. Additionally, Thailand has expedited its free trade agreement negotiations with Bhutan, concluding an agreement within nine months that will remove tariffs on 94% of Bhutanese exports. Meanwhile, Thaksin Shinawatra, the de facto leader of Thailand’s ruling party, is actively involved in shaping the country’s response to the potential impact of the U.S. tariffs.