Illustrative image (Source: Reliance Foundry)
 
Bangkok (VNA) – The US has granted an exemption of 25 percent import tariff to Thailand’s steel pipes, according to the Thai Ministry of Commerce.

This is the outcome of a two-month negotiation between the Thai Ministry of Commerce and the US Department of Commerce.

"Although the US Department of Commerce has yet to grant a waiver on import tariffs for all shipments from Thailand, exporters can ask for an exemption for each shipment. This is good news for Thailand," said Wanchai Varavithya, Deputy Director-General of the Commerce Ministry's Foreign Trade Department.

On March 3, US President Donald Trump imposed a 25 percent tariff on steel imports and a 10 percent tariff on aluminum.

In a bid to curb the harm from the higher US tariffs, Thailand, through its Ministry of Commerce, has since April requested a number of trade privileges aimed at helping Thai exporters compete in both the US and global markets, using the vehicle of the Thailand-US Trade and Investment Framework Agreement meeting in Washington DC.

The Iron and Steel Institute of Thailand estimates that the country will lose 383,496 tonnes or 10.47 billion baht (326.3 million USD) worth of steel exports (notably for steel pipe, cold-rolled steel and galvanised steel sheet) as a direct consequence of the US tariffs.

For indirect impacts, the institute said Thailand is likely to encounter a flood of foreign steel, as the US tariffs are expected to redirect 27.03 million tonnes of steel into ASEAN markets.-VNA