Bangkok: The Thai Chamber of Commerce is urging the government to establish a dedicated team comprising both government and private sectors to address the potential repercussions of increased tariffs implemented by the Trump administration. The chamber warns that these tariffs could significantly impact the Thai economy, potentially reducing the country’s GDP to 2.3-2.5% in 2025.
According to Thai News Agency, the chamber highlighted that Thailand is at risk due to its position as the 11th largest trade surplus holder with the US, which could lead to the country being targeted for tariffs. The concern extends to the possibility of a flood of foreign goods entering the ASEAN market, including Thailand, which could intensify competition for Thai exporters in various sectors such as electronics, automotive, and agriculture. The chamber is advocating for the formation of a ‘Special Team’ with ministerial authority to proactively navigate these changing trade dynamics.
In 2023, the United States was Thailand’s top export destination, with export values reaching 67,659 million US dollars. Despite a trade surplus of 29,045 million US dollars, preliminary data for 2024 indicates an increase in the trade surplus to approximately 45,600 million US dollars, moving Thailand up from 12th to 11th place in terms of trade surplus with the US. This increase has raised concerns that Thailand may become a target for Trump’s trade policies, which aim to reduce the US trade deficit by imposing tariffs on partner countries.
Mr. Sanan Angubolkul, Chairman of the Thai Chamber of Commerce, emphasized the need for strict control and enforcement of import measures to prevent unfair competition. He called for thorough inspections of imported products and strict enforcement of laws to prevent smuggling and dumping, which could harm domestic businesses. The chamber also suggests considering additional laws to protect against unfair competition.
The chamber draws lessons from the US’s recent 25% tariff impositions on Mexico and Canada, noting their swift negotiations and the importance of managing currency and exchange rates to mitigate tariff impacts. These strategies could be crucial for Thailand as well, with the chamber advocating for close monitoring of currency fluctuations.
Assoc. Prof. Dr. Thanawat Polvichai, President of the University of the Thai Chamber of Commerce, assessed that US tariffs on countries like Mexico, Canada, and China, as well as on steel and aluminum, could have significant direct and indirect negative impacts on Thailand, potentially reducing GDP growth by 0.1-0.5%. The impact could be more severe if automobile tariffs are increased, which is a key export sector for Thailand.
Additionally, the private sector, including the Thai Chamber of Commerce, AMCHAM, and the US Chamber of Commerce, is organizing the ‘Thailand – US Investment Forum 2025’ to be held from May 19-20, 2025. This event aims to strengthen bilateral economic relations and explore investment opportunities. Thai business leaders are also preparing to participate in the Select USA 2025 event in Maryland, USA, from May 11-14, 2025, to further explore collaboration opportunities.
