Business leaders demand urgent government action on US trade threat

Business bodies including the TCC warn that failure to counter potential US trade tariffs could significantly reduce GDP

 

The Thai Chamber of Commerce (TCC) has issued a stark warning to government, urging it to appoint a special team to counter potential trade tariffs from the US ahead of an April deadline.

 

The business body insists the Prime Minister must chair this task force, comprising both public and private sector representatives, to formulate a proactive strategy against a possible resurgence of protectionist policies under the Trump 2.0 administration.

 

Concerns are mounting over the potential imposition of tariffs on Thai goods, which could inflict significant economic damage. The Chamber estimates losses ranging from 100 to 150 billion baht, a 0.5 to 0.7 per cent reduction in GDP, and a failure to meet the government’s 3.5 per cent growth target.

 

The root of the anxiety stems from the US trade deficit, with Thailand’s surplus continuing to rise. This has prompted the Joint Public and Private Sector Consultative Committee (JPPSCC) to call for a rapid establishment of a joint working group, a request yet to receive a formal government response.

 



 

Sanan Angubolkul, TCC chairman and the Board of Trade, expressed deep concern, stating that businesses are apprehensive about potential US trade policies.

 

He anticipates a shift towards new markets, with ASEAN and Thailand becoming increasingly crucial, particularly for electronics, electrical appliances, automobiles, industrial goods, consumer products and agricultural and food products.

 

The Chamber emphasised the necessity for stringent import controls, particularly for substandard or low-priced goods that undermine fair competition.
 

  

Sanan called for rigorous import standard checks, mandatory certifications, and thorough verification of product origins to prevent counterfeiting and tax evasion.

 

He also demanded robust enforcement against predatory pricing and dumping, and a review of competition laws to reflect the current economic climate.

 

Poj Aramwattananont, TCC vice chairman, highlighted the need to address the trade imbalance by increasing imports from the US, particularly in agriculture, food and energy.

 

He suggested a reform of Thailand’s import tariff quotas with the US to ensure a balanced and robust negotiating position.

 

Moreover, he stressed the importance of analysing the service sector trade deficit, including digital services, management fees, copyrights, banking, insurance, education and franchise fees, for a comprehensive understanding of economic relations.

 

 

 

PM-led task force proposed

The Chamber reiterated its call for a Prime Minister-led special team to coordinate vital ministries, including Foreign Affairs, Commerce, Agriculture, Industry, Digital Economy, and Labour.

 

This team would work closely with the Thai Chamber of Commerce and the Federation of Thai Industries (FTI) to develop a proactive negotiation strategy.

 

Poj advocated for increased import quotas for feed corn, soybeans, beef, seafood, and energy products from the US to alleviate trade pressures and strengthen Thailand’s negotiating stance.

 

Thanavath Phonvichai, president of the University of the Thai Chamber of Commerce, warned of the severe economic consequences of failing to act swiftly.

  



 

He predicted that Thailand’s 2025 growth could fall below 3 per cent, significantly lower than the government’s 3.5 per cent target.

 

He outlined the potential indirect impact of US tariffs on Canada, Mexico, and China, estimating a 20 to 25 billion baht loss and a 0.1 to 0.5 per cent reduction in GDP. Tariffs on automobiles could result in a 60 to 65 billion baht loss and a 0.35 to 0.4 per cent GDP decrease, potentially limiting growth to 2.6 to 2.8 per cent this year.

 

Furthermore, Thanavath reiterated Sanan’s warning that global tariffs imposed by the US could inflict a minimum loss of 100 to 150 billion baht, reducing GDP by 0.5 to 0.7 per cent, and lowering economic growth to 2.3 to 2.5 per cent.

 

In 2023, the US was Thailand’s leading export market, with exports valued at $67.659 billion, resulting in a $29.045 billion trade surplus. Preliminary 2024 data indicates a surplus of approximately $45.6 billion, moving Thailand from the 12th to the 11th largest surplus holder with the US. This growing imbalance is seen as a potential trigger for US scrutiny and trade action.

(2025/03/07-00:00)