Thailand’s leading business group stated that the U.S. tariffs have weighed on the projected growth of the nation’s economy and exports rate, and warned that if the negotiation for tariff reduction fails, Thailand’s market share in the U.S. may fall.
According to the Joint Standing Committee on Commerce, Industry and Banking, Thailand’s economy this year is estimated to grow 2.0 – 2.2%, instead of 2.4 – 2.9%. As for the export, its growth rate is now speculated to reach only 0.3 – 0.9% instead of 1.5 – 2.5%.
These declines are caused by the U.S. President Donald Trump’s series of import tariffs imposed on several nations, including Thailand. The Southeast Asia nation may face a 36% tariff this July if the Thai government cannot convince the U.S.
Kriengkrai Thiennukul, chairman of the Federation of Thai Industries, which is also part of the business group, warned of the consequences if such an event happened.
Thailand’s economy may rise only 0.7%, while loss from export revenue in the next decade could be as high as THB 1.4 trillion ($43 billion). Furthermore, he also warns of the possibility of other nations receiving a better tariff term. This could weaken Thai exports.
Kriengkrai also stated the business’ concern over Thai currency, recommending the government to seek measures that prevent rapid appreciation and high volatility.
