USA and China agree on trade truce: What does that mean for Thailand?

USA and China agree on trade truce: What does that mean for Thailand?

US-China trade talks are in full swing, and Thailand could potentially benefit from this. In a recent analysis, Amorntep Javavalala, Assistant Managing Director at CIMBT, praises the recently agreed one-year trading halt as a step in the right direction. This agreement is intended to reduce tensions in the global economy, but is seen as a mere short-term solution without guaranteeing lasting changes. Thailand now has the chance to expand its negotiating position with the US and reorient itself in the complex international trade landscape, reports LINE Today.

On November 1, 2025, the US released details of the talks, which are seen as a turning point for the US economy. Key relief includes China's suspension of all tariffs on U.S. agricultural products since March 4, 2025, as well as a planned 10% tariff reduction on Chinese goods effective November 10. These developments could bring a wave of new impetus to trade in the region and present new opportunities for Thailand.

Economic prospects for Thailand

The Thai Chamber of Commerce has expressed urgent requests to conclude customs negotiations before the planned dissolution of parliament. These conversations are crucial to clearly defining the origin of goods and avoiding misdeclared products. Amorntep emphasizes that three key points need to be clarified to consolidate Thailand's market position. However, forecasts suggest Thailand's exports could fall by 9.9% next year, signaling much need for action.

A meeting will be held today, November 5, 2025, to discuss the issue of corruption and its impact on the Thai economy. This highlights that Thailand faces not only external trade issues but also internal challenges that are critical to economic stability.

Global trade dynamics

Experts analyze that the trade tensions between the USA and China also have a direct impact on Thailand. Despite the direct tariffs that primarily affect Canada, the EU and Japan, Thailand could benefit from strategic measures. Dependence on the US should be reduced by seeking new trade agreements and investment partners to promote domestic growth, such as Thailand Tip reported.

Despite all the tensions, the USA remains an important financial center and global investor, while China acts as a central production location. To remain competitive, Thailand should invest in agricultural and food products and increase technology and innovation in the manufacturing sector. A strong “Made in Thailand” brand could help improve global market opportunities and ensure long-term economic stability.

Overall, the current situation shows that Thailand needs to rethink its role in the global value chain more actively than ever and make adjustments. Even though the current trading situation is characterized by uncertainty, with the right approach and a proactive attitude, a positive change can be initiated.