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Implications
Recent negotiations have resulted in a significant shift in US tariff policy towards Thailand, with a new reciprocal tariff rate taking effect on August 1, 2025. Here's a breakdown of the latest updates:
Latest Tariff Update for Thailand:
New Tariff Rate: Thailand has successfully negotiated a reciprocal tariff of 19% on its goods imported into the US.
Effective Date: The new rate became effective on August 1, 2025.
Previous Threat: This is a major win for Thailand, as it was previously threatened with a much higher tariff rate of 36%. The US Commerce Secretary cited successful trade negotiations as the reason for the reduction.
Context for the Deal: The tariff reduction was part of a larger diplomatic effort, with US President Trump reportedly playing a key role in brokering a ceasefire in a border conflict between Thailand and Cambodia. The resolution of this conflict was a condition for the trade deal.
Deals and Agreements:
Reciprocal Tariff Agreement: The new 19% tariff is the result of a "win-win" reciprocal tariff agreement. Thailand's "Team Thailand," a special task force on trade policy, spent over seven months negotiating with the US Trade Representative (USTR).
Thai Concessions: To secure the reduced tariff, Thailand reportedly offered greater market access for US products, including a pledge to scrap tariffs on 90% of its goods. It also promised to implement non-tariff measures to cut its trade surplus with the US by 70% within three years and to crack down on the rerouting of goods produced in other countries (specifically Chinese goods) through Thailand to avoid US tariffs.
Regional Parity: The 19% rate puts Thailand on a level playing field with other major Southeast Asian economies like Indonesia, Malaysia, and the Philippines, which also have similar tariff rates. This helps Thailand remain competitive in the region.
Companies and Sectors Affected:
The reduction from a threatened 36% to a 19% tariff has brought a sense of relief to Thai businesses that had been bracing for a major impact. However, the 19% tariff is still a new cost that exporters will have to manage.
Positive Impact: The new rate provides a more stable and predictable environment for Thai exporters, compared to the previously feared higher tariff. This helps them maintain their competitive edge in the US market.
Sectors at Risk (before the deal): The Federation of Thai Industries (FTI) had warned that a 36% tariff would have severely impacted key Thai export sectors, including:
Processed food and agricultural products
Automotive and parts
Electrical appliances and electronic equipment
Textiles, gems, and jewelry
Steel and aluminumCompanies: While specific company names are not released in the public domain as being directly impacted, the new tariff will affect all Thai companies that export to the US. These companies will need to adjust their pricing and business strategies to account for the new 19% duty, which is still a significant increase from previous years. The Thai Board of Investment (BOI) has emphasized that Thailand's robust industrial ecosystem and pro-business policies, combined with the new deal, will help the country remain an attractive hub for global investors.
US Revised Tariffs
Country Tariffs
Balance of Trade
Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in countries, prepared by U.S. Embassies worldwide, Commerce Department, State Department and other U.S. agencies’ professionals
Tariff Rate for US
World Bank staff estimates using the World Integrated Trade Solution system, based on tariff data from the United Nations Conference on Trade and Development's Trade Analysis and Information System ( TRAINS ) database and global imports data from the United Nations Statistics Division's Comtrade database.
US Imports Guide
United States Imports from Countries during 2024, according to the United Nations COMTRADE database on international trade. United States Imports from Countries- data, historical chart and statistics - was last updated on April of 2025.
Investing in USA
theboardiQ Economic Relevance Score, ranks States of USA based on 11 parameters
Sources : Forbes | USDA Economic Research | TCGen Total Innovation Rank Index | Best States for Manufacturing | World Population Review | Tax Foundation | US News | BEA Data | Wikipedia | International Trade Administration
theboardiQ's Economic Relevance Score provides a comprehensive, data-driven assessment of a nation's economic vitality and global significance. This score is meticulously calculated using 11 key parameters, each reflecting a critical facet of economic performance. It analyzes the representation of Fortune 500 companies within a nation, a strong indicator of its business environment and market size. The balance of trade surplus or deficit reveals the nation's international competitiveness and export strength. It incorporates Gross Domestic Product (GDP), a fundamental measure of overall economic output, and examine the health of key sectors like agriculture and manufacturing. The score also accounts for innovation, gauging a nation's ability to drive future growth through technological advancements. Crucial labor market indicators such as employment rates are considered, alongside fiscal policies reflected in tax rates. To capture the lived experience of citizens, it assesses cost of living and disposable income, providing insight into purchasing power and economic well-being. Finally, education levels are integrated, recognizing their pivotal role in fostering a skilled workforce and driving long-term economic development. By synthesizing these 11 parameters, theboardiQ's Economic Relevance Score delivers a nuanced and holistic view of a nation's economic standing, enabling informed strategic decisions. The Top 5 States in the assessment are Texas, North Carolina, Virginia, Florida and Washington. Texas does consistently well across most of the 11 variables especially in the areas of GDP, F500 representation in the State, Balance of Trade where it ranks 2nd nationally. North Carolina scores as the highest-ranking state nationally in manufacturing and performs consistently across the other variables. Virginia does well in disposable income where it ranks 3rd nationally. It also scores high in the variables of manufacturing and employment Florida holds the 4th ranking nationally for GDP and Tax Washington State scores the top spot for disposable income nationally, 2nd for education and 3rd for innovation. Colorado, with an overall rank of 7 scores the top spot for Education (schools and higher education). Nebraska, that ranked 10th overall, did well in Agriculture where it is ranked 3rd nationally as well as Trade Balance where it ranked 5th. Illinois, though ranked 20th overall did well nationally in F500 representation, GDP, Agriculture, and Disposable Income. Pennsylvania comes in at 21 overall doing well nationally in GDP (6th); Manufacturing (8th) and F500 representation (8th) New York scores 23rd overall with a 2 ranking in Disposable Income nationally, as well as 3rd in both F500 representation and GDP. California comes in at 29th overall and has the top spot ranking in a whopping 4 variables nationally – GDP, Innovation, Agriculture and F500 representation. However, performance in the areas of Trade Balance, Cost of Living, Tax, Manufacturing and Employment resulted in the overall ranking dipping. Wyoming at 30th overall scores the top spot nationally in the area of Tax Massachusetts at 31 overall does well in innovation where it is ranked 2nd nationally Arkansas at 36 and Alabama at 39, do well in overall Cost of Living where they are ranked 2nd and 3rd nationally, respectively. Louisiana ranked 44th overall is ranked 1st in Trade Balance nationally.

Economic
Relevance
Ranking
State | Info | Overall Rank | Agri | Innov | Mfg | Employ | Tax | Edu | GDP | F500 Rep | Trade Balance | Cost of Living | Disp Income |
---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Texas | 1 | 4 | 5 | 11 | 10 | 7 | 42 | 2 | 2 | 2 | 24 | 13 | |
North Carolina | 2 | 9 | 21 | 1 | 4 | 12 | 28 | 11 | 16 | 41 | 17 | 17 | |
Virginia | 3 | 32 | 24 | 6 | 2 | 28 | 7 | 13 | 6 | 34 | 35 | 3 | |
Florida | 4 | 21 | 11 | 15 | 1 | 4 | 35 | 4 | 7 | 40 | 30 | 37 | |
Washington | 5 | 16 | 3 | 36 | 28 | 45 | 9 | 9 | 15 | 9 | 43 | 1 | |
Missouri | 6 | 11 | 25 | 22 | 20 | 13 | 32 | 21 | 22 | 20 | 10 | 20 | |
Georgia | 7 | 15 | 26 | 9 | 3 | 26 | 34 | 8 | 9 | 43 | 26 | 19 | |
Minnesota | 8 | 6 | 10 | 47 | 6 | 44 | 8 | 20 | 10 | 33 | 33 | 9 | |
Ohio | 9 | 12 | 32 | 7 | 30 | 35 | 36 | 7 | 5 | 38 | 15 | 11 | |
Illinois | 10 | 5 | 23 | 31 | 23 | 37 | 16 | 5 | 4 | 47 | 32 | 7 |