Thailand’s economy is under pressure from new U.S. trade policies, as experts warn of potential long-term impacts due to escalating tariffs. A recent panel discussed strategies to mitigate these effects, including enhancing domestic reliance and monitoring currency reserves. Business leaders expressed concerns over volatility and industry ramifications while politicians proposed immediate actions for adapting to changing trade dynamics.
Thailand is grappling with the repercussions of the trade war initiated by the Trump administration, as economic experts convened to discuss its implications during the panel titled “Trade War 2025: How to Deal with Trump?” Notably, Don Nakornthap, the Reserve Management chief at the Bank of Thailand, highlighted the potentially catastrophic implications of trade wars. He pointed out that countries imposing tariffs may lead the world into another Great Depression, emphasizing that no nation can escape the effects of the tariffs imposed by the United States.
China has been particularly affected, experiencing significant tariffs under Trump’s policies after achieving a record trade surplus. Meanwhile, Thailand’s rising trade surplus with the U.S. poses another challenge, as government officials brace for potential higher duties on exports, a development exacerbating market volatility.
Business leaders like Kobsak Pootrakool from the Federation of Thai Capital Market Organizations anticipate ongoing trade fluctuations, urging Thailand to prepare for extended volatility that could last years. He pointed to a turbulent stock market, with continually shifting values reflecting the uncertainties surrounding Trump’s policies.
Dr. Kirida Bhaopichitr from the Thailand Development Research Institute echoed these sentiments, outlining that the trade war hinders growth for both Thailand and global trade, which comprises a significant portion of Thailand’s economy. While risks persist, Dr. Kirida acknowledged emerging opportunities, particularly increased imports from China, suggesting a need for adaptability from Thai businesses.
Additionally, Kriengkrai Thiennukul from the Federation of Thai Industries stated that Thailand is under close observation due to its substantial trade surplus with the U.S. He recommended that the Thai government engage in active negotiations to safeguard its interests against impending tariff regulations.
In light of overnight tariff implementations and challenges, Thailand’s industries, particularly automotive manufacturing, face potential declines. Domestic producers are encouraged to adopt strategic measures to mitigate impacts through negotiations and manufacturing adaptations.
For immediate action, former senator Pisan Manawapat proposed strategies for Prime Minister Paetongtarn Shinawatra, focusing on understanding Trump’s negotiation style, enhancing relations with the U.S., and promoting Thailand’s economic strengths.
Expectations for China’s future involvement in the region were reflected in Associate Professor Dr. Piti Srisangnam’s analysis, mentioning probable geopolitical shifts as the U.S. reevaluates its engagement with China. The looming question remains how Trump’s evolving trade policies will ultimately shape Thailand and its international relationships in the years to come.
In conclusion, Thailand is poised to face significant challenges due to the ongoing trade war policies of the Trump administration. Economic experts and industry leaders emphasize the necessity for strategic adaptation and enhancing domestic resilience in the face of rising tariffs. While opportunities for growth exist, particularly through regional agreements, the potential for economic turbulence cannot be overlooked. The implementation of well-considered strategies will be crucial for Thailand as it navigates this complex international landscape.
Original Source: www.nationthailand.com
