- Thailand faces a 36% tariff from the US, impacting $45B trade surplus and GDP growth.
- The government plans talks to reduce US tariffs and protect exporters’ interests.
- Southeast Asian markets, including Thailand, react to Trump’s tariff escalation.
Thailand is set to negotiate with the United States after imposing a 36% tariff on Thai goods. Prime Minister Paetongtarn Shinawatra emphasized that the government has a comprehensive plan to minimize the tariffs’ economic impact. The Thai government’s primary goal is to initiate dialogue with the President to reduce the tariff rate, which has sent shockwaves through the country’s export-driven economy.
The announcement comes after US President Donald Trump unveiled a broader set of tariffs that affected several nations, including Thailand. The 36% tariff rate is considerably higher than Thai businesses had anticipated, creating a sense of urgency within the government to address the situation swiftly.
Thailand’s Response to US Tariffs
Prime Minister Paetongtarn reassured the public that the government was taking proactive measures to address the situation. “We have prepared several steps, including sending our permanent secretary to talk with them,” Paetongtarn stated, expressing optimism about the negotiations. She further explained that the government would employ a balanced approach, focusing on understanding the specific products the US deems unfairly traded and exploring potential adjustments.
Deputy Finance Minister Julapun Amornvivat echoed the sentiment, noting that although the tariff level exceeded expectations, the government remained calm and ready for constructive dialogue. He also highlighted the importance of maintaining a cooperative tone in discussions to ensure favorable outcomes.
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Economic Concerns and Market Reactions
The imposition of the 36% tariff has raised concerns about Thailand’s economic outlook, particularly its GDP growth. Analysts have warned that the reciprocal tariffs could reduce the country’s GDP by up to 1.2%, affecting businesses and consumers. Thailand’s trade surplus with the US, valued at $45 billion last year, could be at risk due to these new levies.
In addition to the tariff concerns, Southeast Asian currencies and stocks saw declines in response to Trump’s announcement. The Thai baht dropped as much as 0.8% against the US dollar, while other regional currencies, such as the Malaysian ringgit and South Korean won, also weakened. Southeast Asian equities, already under pressure this year, suffered further losses, reflecting investor concerns about the broader impact of the US trade measures.
The Thai government continues to strive toward reducing tariff burdens in the face of present difficulties. Government officials are developing methods to balance the trade relationship with the United States to attract better trade terms. The Thai government has adopted quick actions to minimize industry impacts, especially for farmers and exporters who will face the highest risks from upcoming tariff changes, according to Paetongtarn.
