Deputy Finance Minister Julapun Amornvivat stated that the full effects of US President Donald Trump’s tariffs on Thailand’s economy are expected to be clearer in the third quarter. In the second quarter, Thai exports grew to avoid the tariffs, as the 90-day moratorium on the measures means their impact remains uncertain.
“Once the US begins trade negotiations with Thailand, the situation should become more transparent. If discussions go smoothly, we may be able to lessen the negative effects,” Mr. Julapun remarked.
He confirmed that a 10% tariff on exports to the US, which Thailand has implemented for all foreign suppliers, remains in place. However, Thailand is open to negotiations that ensure the US’s tariff rate on Thai goods does not exceed those imposed on competitor nations.
Thailand initially faced a 36% US tariff in April, and the 90-day pause is set to end in July. Mr. Julapun criticized the proposed US tariffs as undermining multilateral agreements, including WTO commitments.
Regarding measures to counteract economic volatility, the government is considering a 157-billion-baht stimulus package. This initiative aims to create domestic employment, boost production within the local supply chain, and foster investment to stimulate the economy through various cycles.
Originally allocated for a digital wallet distribution, the budget has been redirected toward investment-driven stimulus programs. While cash handouts provide quick relief, Mr. Julapun emphasized that investment projects foster long-term economic restructuring and stability.
These projects are currently under review, with proposals totaling up to 400 billion baht from government agencies undergoing evaluation. The screening process will exclude projects with investments below 500,000 baht, as they are deemed small-scale and potentially lacking transparency due to procurement requirements.
Government spokesperson Jirayu Houngsub said Prime Minister Paetongtarn Shinawatra addressed the cabinet regarding the use of the fiscal 2025 central budget of 157 billion baht for economic stimulation. This budget is being examined by a project screening subcommittee, while proposals from various ministries are under review by the Budget Bureau.
Ms. Paetongtarn emphasized that all ministries must thoroughly review their budget proposals to ensure they comply with legal and constitutional standards, particularly Section 144, which prohibits conflicts of interest involving Members of Parliament, Senators, or committee members in the disbursement of national funds. The goal is to ensure due diligence, transparency, and legal compliance in all projects approved by the cabinet.
