Thailand has announced a reduction in import tariffs on corn from the United States, a decision expected to have a notable impact on the country’s agricultural sector. Finance Minister Pichai Chunhavajira stated that U.S. corn is more affordable, which could help reduce the cost of animal feed.

This move is part of a broader response to higher tariffs previously imposed by the United States during the administration of former President Donald Trump. At the time, the corn import duty was raised to 36%, significantly higher than anticipated by countries in the region.

Context: U.S.–Thailand Trade Relations

The United States has remained Thailand’s largest export market in recent years. In 2023, it accounted for 18.3% of Thailand’s total exports, equivalent to $54.96 billion. Meanwhile, the U.S. trade deficit with Thailand stood at $45.6 billion.

A recently introduced 90-day pause on U.S. tariffs has given Thai officials time to adjust trade policies and mitigate potential economic impacts.

Key Drivers Behind the Tariff Adjustment

Several factors contributed to the decision to lower import duties:

• Rising local feed costs – Cheaper U.S. corn may help stabilize domestic prices.

• Support for the agriculture sector – Lower input costs benefit livestock producers and meat processors.

• Regional competition – Southeast Asian nations are seeking more favorable trade terms with the U.S.

• Global supply chain disruptions – Volatile prices and logistics challenges are prompting policy flexibility.

Potential Impacts

Though the measure is currently temporary, its effects may be felt both domestically and internationally. Anticipated outcomes include:

• Reduced prices for livestock products;

• Alleviated inflationary pressure on food and agricultural goods;

• Increased market competition within Thailand's feed and farming industries;

• Revived trade discussions with the U.S. on other product categories.

Additionally, Thailand’s move may be interpreted as a signal of openness to further dialogue amid ongoing global trade tensions.

Positioning on the Global Stage

Thailand continues to play a significant role in Southeast Asia, maintaining strong economic ties with both Western nations and regional partners. Balancing interests between major powers such as the U.S. and China necessitates a flexible and responsive trade policy. Adjusting tariffs on essential agricultural imports like corn highlights Thailand’s pragmatic approach in navigating an increasingly complex global trade environment.