By Kitiphong Thaichareon

BANGKOK (Reuters)

Thailand’s formal trade proposal will be submitted to the U.S. this week, with the first round of discussions set to take place online, as the country seeks to mitigate higher U.S. tariffs.

The Southeast Asian nation faces a 36% tariff on exports if a reduction cannot be negotiated before a July deadline linked to President Donald Trump’s tariffs. Finance Minister Pichai Chunhavajira announced that formal negotiations will start with technical discussions and the proposal will be submitted after these talks.

Pichai hopes for favorable terms on tariffs, potentially as low as 10%. Last year, the U.S. was Thailand’s largest export market, accounting for 18.3% of total shipments worth $55 billion, despite a trade deficit with Thailand of $45.6 billion.

Additionally, Pichai mentioned a meeting for a $4.8 billion economic stimulus project aimed at supporting the sluggish economy, expected to grow just over 1% this year due to tariff impacts. He is also open to working with any selected candidate for the next central bank governor.

($1 = 32.50 baht)