The Thai business sector remains optimistic about tariff negotiations with the US, especially after Vietnam secured a 20% tariff rate on shipments and a waiver for some US imports. Thailand, along with Japan, the EU, and South Korea, is awaiting final US tariff decisions by July 9. The US-Vietnam deal involves a 40% tariff on third-country goods routed through Vietnam, aimed at curbing Chinese circumvention. Economists believe Thailand has an advantage due to existing measures to prevent such practices and a lower trade surplus with the US.
While Vietnam benefits from lower costs and a stable government, Thailand’s infrastructure favors investment. Experts note the US aims to block China’s growth and may exempt Thailand from heavy tariffs, given its diplomatic status. However, Thailand’s exports, particularly industrial and agricultural products, face risks if tariffs increase, with key sectors including electronics, machinery, rice, and rubber.
Thailand’s potential strategies include reducing costs, diversifying markets, and strengthening trade frameworks. Vietnam, on the other hand, is seen as a cost-effective, strategically positioned trade partner attracting global firms like Samsung and Apple. Vietnam remains committed to growth, aiming for 8-10% GDP increase and maintaining a diversified supply chain, with electronics and textiles being most impacted by US tariffs.