Thailand to Leverage Military Ties in US Trade Negotiations

Bangkok Warns of Defense Ties Over Tariffs

Thailand is preparing to inform the United States administration that steep import tariffs could compel the kingdom to scale back bilateral military cooperation, including participation in the signature Cobra Gold exercises, according to an official familiar with the matter. The diplomatic warning is set to be embedded in Bangkok’s counterproposal when reciprocal trade negotiations resume in August.

The strategy marks a rare attempt by Bangkok to weaponize its decades-long security alliance with Washington to secure economic concessions, Bloomberg reported. Thailand recorded a trade surplus of $51.4 billion with the United States in 2025.

Trade Surplus Meets New Import Levies

The push comes after Washington imposed a 12.5% tariff, prompting the Thai government to advocate for better trade terms.

Thai Commerce Minister Suphajee Suthumpun emphasized in July that the kingdom deserves more favorable market treatment owing to the strategic alliance between the two nations and substantial Thai investments in the US economy.

Targeting the 19 Percent Tariff Cap

Under its current negotiating position, the Thai government is pushing to cap the tariff rate at 19%, a threshold discussed under a previous agreement.

While the warning regarding military ties will be broadly worded in the upcoming counterproposal, an anonymous government official noted that significant economic repercussions from higher tariffs could greatly influence Bangkok’s participation in joint military activities.

Cobra Gold Exercises at Risk

The potential pullback threatens the Cobra Gold exercises, a key element of one of America’s oldest security alliances in Asia. To address Washington’s core concerns alongside the trade talks, the Thai government has pledged to speed up legislation banning the import of goods produced using forced labor.

Pentagon Response and August Talks

A Pentagon spokesperson stated that the agency could neither confirm nor verify the report, adding that negotiations are more likely to focus on enhancing cooperation.

Reciprocal trade talks are scheduled to resume later in August.