Bangkok: Dr. Kobsak Pootrakul is monitoring closely as Donald Trump seeks to impose increased import tariffs, potentially affecting Thai exports. The global tariff could rise to 15%, raising concerns about a second global trade war.
According to Thai News Agency, Dr. Kobsak Pootrakul, Chairman of the Thai Capital Market Business Council, expressed his views on Facebook regarding the US Supreme Court's decision to overturn Trump's import tariffs. He noted that while the court ruled that President Trump exceeded his authority under the International Emergency Economic Powers Act (IEEPA), the Trump administration still has avenues to impose certain types of customs duties.
Dr. Kobsak highlighted that reducing import tariffs to 10% could have led to a 15% global tariff. He pointed out that many countries were optimistic following the court's ruling. However, Trump announced plans to adjust the tariff structure using existing laws, which might result in higher tariffs than those currently imposed through trade negotiations. This shift suggests that the burden will be heavier, impacting countries and businesses differently but with an overall greater impact.
Recently, Trump imposed a 10% global tariff under Section 122 of the Trade Act 1974, following the rejection by the Supreme Court. He then increased the tariff to 15%, marking the second day of the global trade war. This action represents the maximum authority under the law and can be enforced within a 150-day period while preparing other legally binding tariff measures.
Countries like Singapore, which previously benefited from low reciprocal tariff rates, will now face challenges at the 15% rate. The UK and other regions, including Europe, Japan, and Korea, will revert to previous levels. Thailand and ASEAN countries will experience tariffs close to their former levels, around 19-20%. Dr. Kobsak warns that this is only the beginning, with more tariff increases anticipated.
Supreme Court Justice Kavanaugh noted that despite disagreeing with the court's decision, the ruling may not significantly limit the president's power to impose tariffs in the future, due to other federal statutes that authorize tariff imposition. These laws include the Trade Act 1974, the Trade Expansion Act 1962, and the Tariff Act of 1930, which empower the imposition of tariffs under various circumstances.
President Trump remarked that the celebrations following the Supreme Court's decision might be short-lived, suggesting that further developments in the global trade war could have severe impacts on Thailand and other countries.