In light of escalating trade tensions with the United States, Thailand’s Board of Investment (BOI) is preparing new tax incentives aimed at helping investors and exporters weather the impact of recent tariff measures imposed by the US government.
The proposal is scheduled for discussion at the BOI board meeting on 19 May 2025. The measures under consideration involve adjustments to existing tax and value-added tax (VAT) policies to support Thai businesses affected by the tariffs. While specifics have yet to be announced, the government intends to implement the relief measures soon.
The initiative comes in response to the US ‘s tariff policy to impose a 36% tariff on Thai imports, effective on 9 April 2025. Although enforcement has been temporarily paused for 90 days to allow for bilateral negotiations, Thai exporters, especially those in the automotive and electronics sectors, remain concerned. These industries represent a significant portion of Thailand’s GDP and are highly reliant on access to the US market.
In 2024, Thailand’s trade surplus with the US exceeded US$35 billion, making it the 11th largest globally. Additional tariffs—25% on foreign-made vehicles and key auto parts—pose further risks to export-dependent manufacturers.
During the 2025 Subcon Thailand event, theb Minister of Finance urged Thai manufacturers to adapt their business strategies to global shifts. The BOI ’s planned tax measures are expected to play a key role in maintaining investor confidence and ensuring economic resilience amid growing protectionism.
Thailand’s BOI Weighs Tax Incentives to Offset US Tariffs_Bangkok Global Law