US tariff uncertainty threatens rice industry in Thailand

Thailand's billion-dollar rice industry would be exposed to major risks if its trade negotiations with the U.S. fail, as the Trump government is threatening a 36 percent tariff on the country.

While the U.S. is not Thailand's largest rice consumer, it remains a critical market for high-value varieties, especially the premium jasmine rice. The Thai government claimed to be advancing a new proposal to achieve a trade balance with the U.S. and avoid Trump's additional tariff, but the huge uncertainty has burdened local farmers.

Rice growers in the country are facing a harsh reality, with dwindling margins and the looming threat of unsustainable debt with just one failed harvest.

"Most farmers borrow money. When we harvest the rice, but the price is not good, we still have costs, for the family and for production. Our income is irregular, so it makes life difficult. Farmers cannot escape this problem. They face this same hardship," said Thawee Sunimit, a local rice farmer.

Half of Thailand's cultivated land is devoted to rice farming, and one in five households grows rice. The pillar industry has already eroded with rising costs, extreme weather, and shrinking exports, and the tariff threat further undermines the exports and narrows the profit. As countries have been delaying their buying decisions due to the tariff, the overall rice exports of Thailand fell by 30 percent in the first quarter.

"Farmers are the driving force of the country's economy. We are concerned because we export a lot of rice to the U.S., more than 800,000 tonnes per year. If this tax is set, 36 percent will immediately increase the price of our products. We are not sure if consumers will have purchasing power, or if they will switch to cheaper products," said Kriengsak Tapananon, the Honorary Adviser of the Thai Rice Farmer Association.

Despite the export decrease, Thailand remains the world's second-largest rice exporter, supplying more than 9 million tonnes annually to global markets. As Trump's tariff is shaking Thailand's rice industry, the global rice supply is also under threat.

US tariff uncertainty threatens rice industry in Thailand

The Taiwan question concerns China's core interests and constitutes the biggest risk in China-U.S. relations, Chinese Foreign Minister Wang Yi said Thursday when speaking to U.S. Secretary of State Marco Rubio over the phone.

Wang, also a member of the Political Bureau of the Communist Party of China Central Committee, noted that the U.S. side should honor its commitments and make the right choices, opening new space for China-U.S. cooperation and doing its part to promote world peace.

Head-of-state diplomacy has always been the "anchor" of China-U.S. relations, Wang said.

Noting that bilateral ties have generally remained stable under the strategic guidance of Chinese President Xi Jinping and U.S. President Donald Trump, Wang said it serves the fundamental interests of both peoples and meets the common expectations of the international community.

Both sides should safeguard the hard-won stability, prepare well for key high-level interaction agendas, expand areas of cooperation, manage differences, explore building a China-U.S. relationship that is strategic, constructive and stable, and achieve mutual respect, peaceful coexistence and win-win cooperation.

For his part, Rubio said that the U.S.-China relationship is the most important bilateral relationship in the world, and head-of-state diplomacy is at the core of the relationship.

Both sides should maintain communication and coordination, respect each other, properly handle differences, accumulate achievements for high-level interactions between the United States and China, and seek strategic stability in U.S.-China relations, said Rubio.

The two sides also exchanged views on the situation in the Middle East, among others.

Taiwan question constitutes biggest risk in China-US relations: Chinese FM