TMTPOST -- Thailand is considering duty-free for more U.S. goods to strike a trade deal to avoid hefty tariffs imposed by the Trump administration.

Credit：China Central Television

Thailand could cut tariffs for goods imported from the U.S. to zero, Finance Minister Pichai Chunahavajira said at a trade seminar in Bankok on Monday, reported Bloomberg. The government may also amend existing regulations to allow left-hand drive vehicles from the U.S and eliminate taxes on goods already included in free-trade agreements with other countries, he said.

While Thailand has previously lower levies on imports of longan and tilapia fish from other countries, Chunahavajira said the U.S. is pushing for “ambitious proposals”.  both Washington and Bankok remain engaged in ongoing dialogue to reach a deal, said the minister. Thai officials are reportedly optimistic about settling an agreement by the August 1 deadline, which was extended by U.S. President Donald Trump last week.

Trump on July 7 first sent his letters indicating tariffs on trading partners starting next month, and Thailand was one of the first 14 countries that received the letters that day.

In a series of social media posts sharing screenshots of form letters to the leaders of these countries, Trump notified them of 25% tariffs on all the imports from Japan, South Korea, Kazakhstan, Malaysia and Tunisia, 30% tariffs on imports from South Africa and Bosnia and Herzegovina, 32% tariffs on Indonesia, 35% tariffs on Bangladesh and Serbia, 36% tariffs on Thailand and Cambodia, 40% tariffs on Laos and Myanmar.

The 36% tariff rate is higher than the current baseline 10% level and the same with the reciprocal tariffs for Thailand Trump announced on April 2, a date the president proclaimed  “Liberation Day”.

Trump in the letters issued similar threat that transshipping goods will be high hit with higher tariffs, and the aforementioned countries, if later decide to slap the U.S. with higher tariffs ,will face extra tariffs with the same level they will impose on top of the new tariff rates effective on August 1. And the president added companies in these countries will be granted exemptions if they decide to make products in the United States.

Trump on Monday signed an executive order, delaying the tariff deadline on July 9,Wednesday, to August 1. That order effectively won more time for U.S.-India trade negotiations.  In the aforementioned letters, Trump said he would consider “an adjustment” to the letter if the countries cooperate. “These Tariffs may be modified, upward or downward, depending on our relationship with your Country,” the president wrote.