BANGKOK, THAILAND – Thailand moved to rapidly diversify its export markets after the United States sharply raised tariffs on a wide range of Thai products.
US tariff shock triggers policy shift
Thailand came under intense pressure after the US unexpectedly increased duties by 19% on numerous Thai goods. More than 20% of the country’s exports had recently gone to the US, and from January to September 2025 shipments worth over 52 billion dollars flowed into that market, a jump of 28.6%.
“We must spread our risk widely.”
said Suphajee Suthumpun, trade minister. In response, the government launched an accelerated free trade agreement initiative aimed at reducing dependence on the US.
Three major trade deals in one year
Officials in Bangkok worked under tight deadlines on three separate free trade accords they said could reshape the country’s economic balance within a year. The planned Thailand–EFTA FTA was expected to reach parliament in January 2026, with a projected growth boost of 0.179% and a role as a gateway to Europe.
The Thailand–EU FTA was described as the most significant, with potential to lift GDP by 1.28%, though several “open points” remained under negotiation, despite what insiders called good chances for a swift deal. A Thailand–South Korea CEPA was scheduled to have final details settled by December 2025, with economists forecasting growth of 0.32% to 0.44%.
Expected impact of new agreements
Taken together, the three agreements were projected to generate additional trade worth 139 billion baht within a year. Officials portrayed this as a powerful stimulus intended to offset the impact of new US trade barriers.
The government framed the package as a broader strategic move rather than a short-term fix, linking it to a longer-term shift in trade patterns and reduced exposure to a single major market.
Special Task Force targets new markets
Alongside the FTA push, Thailand launched an offensive into less developed export destinations under a Special Task Force (STF) programme. The initiative focused on western China, including Chengdu, Chongqing and Xishuangbanna, with an emphasis on food, beverages and pet food.
Vietnam was identified as a key market for products for mothers and babies, while India, especially Mumbai, was targeted for environmental technologies. The ministry already calculated an additional 190 million baht in value from these missions alone.
US importers still in play
Despite the tariff dispute, major US import firms were to be invited to explore new business models. Officials signalled that they sought to maintain commercial links with the US while diversifying destinations and product lines.
This approach aimed to mitigate immediate damage from higher duties while preserving longer-term access to the world’s largest economy.
Global expansion plan for 2026
For 2026, the government mapped out entry into more than 20 new markets, from Norway to Mexico and from Saudi Arabia to Uganda. Planned exports ranged from machinery and industrial goods for African countries to fashion and food products for Europe.
The stated goal was to reach 95 billion dollars in export volume to these new regions, implying growth of at least 9%, almost double the rate recorded in 2024.
Government stance: from defence to offense
A government official summed up the new posture in stark terms:
“We do not just want to react – we want to go on the offensive.”
said the official.
Authorities presented the combination of FTAs and new-market drives as an active strategy to secure future growth under more volatile global conditions.
Advisers urge diversification and caution
The National Economic and Social Development Council (NESDC) backed the diversification of markets but also called for prudence. Secretary-general Onfa Vechacheewa pressed for swift FTA deals while urging solutions to rising production costs, dependence on raw materials and fresh US trade barriers.
She highlighted the need for stronger risk management in the face of exchange-rate fluctuations. Despite her warnings, she underlined the continuing importance of the US market for Thai exporters.
“We cannot do without the US – but we can no longer rely on them alone.”
said Onfa.