The Joint Standing Committee on Commerce, Industry, and Banking (JSCCIB) is urging the government to collaborate with business sector representatives to create a “Team Thailand” that will address the effects of the new U.S. policies under the Donald Trump administration.
The involvement of the private sector is deemed crucial, supporting the JSCCIB’s recommendation for the establishment of a war room to evaluate changes in U.S. economic policies. “We are concerned that Trump’s policies could impact international trade, investment, and industries in Thailand,” stated Kriengkrai Thiennukul, the chairman of the Federation of Thai Industries (FTI), who presided over a JSCCIB meeting on Wednesday.
A significant concern is Trump’s approach to raising tariffs on imports to the U.S. The president had initially announced increased tariffs on goods from Canada and Mexico but quickly reversed this decision after market reactions and agreements were reached regarding border and drug policies, as reported by the media.
Additionally, Washington has implemented a 10% tariff increase on Chinese products, starting February 4, which could provoke further trade policy responses.
The JSCCIB expresses apprehension that any tariff increases could also be applied to Thai products, given Thailand’s trade surplus with the U.S. Under the Trump administration, Thai exports may face tariffs ranging from 10% to 20%, according to FTI estimates.
In 2020, Thailand recorded a trade surplus with the U.S. of approximately $20 billion, which later grew by 11%, positioning Thailand as the 12th largest holder of a current account surplus with the U.S. the previous year.
Thailand’s annual exports to the U.S. total about $47 billion, accounting for 17% of the country’s total exports.
Sanan Angubolkul, chairman of the Thai Chamber of Commerce, advocates for closer collaboration between entrepreneurs and government officials to address the implications of U.S. policies. “The JSCCIB wants to be part of Team Thailand to manage the repercussions of the new trade war,” he remarked.
The ongoing U.S.-China trade war may compel Chinese companies to increase exports to Southeast Asia, exacerbating the influx of low-cost Chinese products into the Thai market, which is already impacting 23 industrial sectors. This figure could rise to 30 sectors this year, as noted by Mr. Sanan.
The JSCCIB agrees with the idea of employing lobbyists to engage with U.S. authorities on economic matters. Mr. Kriengkrai has previously stated that lobbyists can play a valuable role in ensuring that Thailand secures mutual benefits through win-win negotiations.
The panel anticipates that Thailand’s GDP growth will range from 2.4% to 2.9% this year, with exports projected to grow by 1.5% to 2.5%. Inflation is expected to be between 0.8% and 1.2% in 2025, according to the JSCCIB.
