U.S. Cabinet endorses tax declaration, designates emergency funding for border incident victims
The Thai Cabinet, chaired by Acting Prime Minister Phumtham Wechayachai, held an urgent meeting on Friday to discuss and approve a joint statement regarding a 19% reciprocal tariff from the United States on Thai exports. This decision marks a significant milestone in Thailand's trade relationship with the U.S., aligning with regional ASEAN practices.
The 19% tariff rate, higher than the initial 10%, follows the Cabinet's approval of Thailand's final tariff proposal submitted to the U.S. Trade Representative around August 1, 2025, and minor revisions to the final draft tariff document sent by the U.S. side.
Deputy Prime Minister and Finance Minister Pichai Chunhavajira collaborated with his U.S. counterparts to draft the joint statement on tariffs, aiming to mitigate the potential negative effects on Thailand's competitiveness in the global market.
To offset these impacts, the Thai government is preparing a stimulus plan amounting to 157 billion baht to support the export sector, particularly small and medium enterprises (SMEs) involved in the export supply chain to the U.S. This includes special low-interest loans from state-owned financial institutions aimed at increasing liquidity and reducing financial burdens on exporters.
In other developments, the Thai Disaster Agency is monitoring four flood-hit provinces and preparing for the next weather system. Meanwhile, regarding emergency funds for victims of the Thailand-Cambodia border incident, the available sources do not specifically mention the allocation of emergency financial assistance related to that situation.
However, the ceasefire agreement reached on July 28, 2025, between Thailand and Cambodia was a critical development covered in the context of broader bilateral relations, including trade discussions. The absence of explicit details about emergency victim funds in the sources suggests that if such assistance has been allocated, it has not been publicly documented in the cited articles.
In a move to enhance border security, the Royal Thai Air Force will commission 8 AT-6 aircraft for border operations and air support missions. The National Security Council (NSC) has been assigned as the secretariat to work with relevant agencies on emergency funds, which will be used to compensate civilians, military personnel, and police officers affected by the border conflict. The criteria and procedures for accessing emergency funds are being outlined by the relevant agencies.
This reflects an ongoing balancing act in Thailand-U.S. trade relations amid geopolitical and economic challenges in mid-2025. The 19% tariff rate allows Thailand to remain competitive in the global market, thanks to the Thai government's proactive economic measures.
- The 19% tariff rate, approved by the Thai Cabinet, is a significant development in the country's trade relationship with the U.S., affecting both business and finance sectors.
- As a response to the 19% tariff, the Thai government is preparing a stimulus plan worth 157 billion baht, primarily benefiting small and medium enterprises involved in exporting to the U.S.
- Simultaneously, the Thai government is also working on matters outside trade, such as monitoring flood-hit provinces, preparing for emergency funds for victims of the Thailand-Cambodia border incident, and enhancing border security.
- The ongoing tariff discussions between Thailand and the U.S., along with geopolitical and economic challenges, reveal a delicate balance in policy-and-legislation and politics regarding Thailand's trade relations.
