U.S. and Thailand Reach Framework for Reciprocal Trade Agreement

Trade Update • Oct. 27, 2025

Key Points

• The United States and Thailand reached a Framework for an Agreement on Reciprocal Trade to expand market access and strengthen bilateral trade.
  
• Thailand will remove tariffs on about 99% of U.S. goods, including industrial and agricultural products.
• The U.S. will maintain a 19% reciprocal tariff rate and identify select Thai goods for zero tariffs under recent executive orders.
• Both sides will address non-tariff barriers, customs procedures, and regulatory transparency to facilitate trade.
  
• Negotiations to finalize and sign the agreement will take place in the coming weeks.

The U.S. and Thailand have agreed to a new framework for an Agreement on Reciprocal Trade, aiming to strengthen economic ties and open wider access to each other’s markets. The framework builds on previous accords, including the 1966 U.S.–Thailand Treaty of Amity and Economic Relations and the 2002 Trade and Investment Framework Agreement.

Once finalized, the agreement is expected to boost trade flows by reducing tariff and non-tariff barriers across key sectors such as manufacturing, agriculture, and energy.

Tariff Commitments

• Thailand’s commitments:
  
  • Eliminate tariff barriers on approximately 99% of goods, covering nearly all categories of U.S. industrial and agricultural exports.
• U.S. commitments:
  
  • Maintain a 19% reciprocal tariff rate on Thai-origin goods, as established under Executive Order 14257 (April 2, 2025).
    
  • Identify Thai goods listed in Annex III of Executive Order 14346 (September 5, 2025) for zero-percent tariff treatment under aligned partner status.
    

Addressing Non-Tariff Barriers

Both governments will cooperate to remove or reduce non-tariff trade barriers that affect market access. Thailand has committed to:

• Recognize U.S. motor vehicle standards for safety and emissions.
• Accept U.S. FDA certifications for medical devices and pharmaceuticals.
• Allow imports of U.S. ethanol for fuel.
• Amend customs laws to remove the customs reward system linked to penalties.
• Adopt good regulatory practices to streamline import and export processes.

What Happens Next?

The U.S and Thailand will continue negotiations to finalize the full agreement, complete domestic review processes, and prepare for signature. Once in effect, the agreement is expected to significantly enhance U.S.–Thailand trade relations by improving market access and reducing trade costs.

How GHY Can Help?

GHY specializes in helping businesses navigate and reduce the impacts of tariffs through strategic solutions tailored to their needs. Our experts can audit your supply chain to identify inefficiencies, uncover cost-saving opportunities, and ensure compliance with evolving trade regulations. We also employ tariff engineering techniques to optimize product classification and sourcing strategies, minimizing duty exposure and maximizing profitability.

By partnering with GHY, your business gains access to the tools and expertise needed to streamline operations and stay competitive in a challenging trade environment.

Contact Us Today! Booking a Meeting, email consult@ghy.com, or call +1 (800) 667-0771.