Trump's Tariffs Could Reshape Global Trade, Warns Thai Billionaire

CP Group founder Dhanin Chearavanont urges Thailand to immediately join the CPTPP bloc, arguing it's vital for economic cooperation as US policies disrupt the international trading system.

 

One of Asia's most influential business figures, Dhanin Chearavanont, founder of Thailand's Charoen Pokphand (CP) Group, has called for swift action by Bangkok to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). 

 

His advice comes amid warnings that the US government's protectionist tariff policies risk destabilising the global trade landscape.

 

Speaking in an informal interview at the annual "Future of Asia" seminar in May, recently broadcast via the Nikkei Asia website, Dhanin emphatically stated that "Thailand should join immediately. There's no reason not to."

 

The CPTPP is a significant trade agreement encompassing 12 member nations, including key economies like Japan, Singapore, Vietnam, and Australia, designed to foster mutual trade and investment. 

 

Both China and Indonesia have already applied for membership, but Thailand has yet to submit its formal application.

 


"I believe people will become wealthier if all countries support and cooperate with each other," Dhanin asserted. "Nations can secure markets for selling goods and services under free trade. Through investment and production, they can also increase the purchasing power of local populations and bolster local economies."
 
 

Nikkei's reporting indicates that Thailand's export-reliant economy is anticipated to be significantly affected by potential tariff hikes under a future Donald Trump presidency. 

 

In May, the National Economic and Social Development Council (NESDC) consequently downgraded Thailand's Gross Domestic Product (GDP) growth forecast for this year to between 1.3% and 2.3%, a notable reduction from its previous estimate of 2.3% to 3.3%.

 

Beyond CPTPP, Dhanin also explored the potential for establishing a new Asian trade system, spearheaded by the Association of Southeast Asian Nations (ASEAN), Japan, and China.

 


"Creating an Asian trade system is a very good idea. It will help us build our growth foundation even if the United States does not participate," he explained. "This is one of our future directions. If Japan, China, and ASEAN can form a trade framework as a single unit, negotiations with the European Union on tariffs and other issues become possible. Ultimately, this initiative will evolve into an effort to lead to the restructuring of the new global economy."


 

Addressing the broader issue of protectionist policies, Dhanin was unequivocal. "The world is more connected by information than ever before. Cross-border economic activities are increasing. The Trump administration is running against the tide, and it's impossible to change the situation. US protectionism will not last long."

 

For Japan, CP Group has maintained a strong presence, notably through poultry exports since the 1970s. Dhanin believes that increased US tariffs could "create an advantage for Japan," drawing parallels with past trade negotiations between Japan and the US in the 1980s and 90s.
  

"The US used to be concerned about Japan's high-tech, but now it's concerned about China instead," Dhanin remarked, suggesting that Japan might be able to further develop its high-technology without the intense scrutiny previously faced from the US.

 

The CP Group Senior Chairman also conveyed his group's keen interest in collaborating with and investing in Japanese companies. 

 


"CP Group sees the potential of Japanese high-tech, so we want to invest in Japanese companies," he stated. "We want to accelerate our businesses and multiply our productivity many times over through automation. Otherwise, we won't survive in fierce competition. Japan's robotics industry has a very bright future."


 

In the agricultural sector, Dhanin noted Japan's excellent products such as Kobe beef, Kurobuta pork, Shine Muscat grapes, and mangoes, but highlighted that production volumes remain small.

 

He suggested that Japan "could move towards the global market if it increases the production of these goods."

 

Throughout the interview, Dhanin consistently emphasised that private companies should steer clear of international political issues, such as relations with China, and focus solely on economic activities, which he believes play a crucial role in fostering regional economic cooperation.

 

"It's not just CP Group; other private companies are likely to flock to Japan as well," he concluded, adding that Japanese companies should, in turn, invest in China and ASEAN. 

 

He even suggested that CITIC, the Chinese state-owned investment firm in which CP Group invested in 2015, might consider investments in Japan.

 

In April, CP Group announced its decision to terminate a joint venture agreement with Japanese trading giant Itochu, though both parties confirmed they would remain strategic business partners. 

 

"We want to cooperate not only with Itochu but also with other Japanese companies and invest in them," the CP Group Senior Chairman reiterated.

(2025/07/07-00:00)