Thai Government Under Fire Over US Tariff Hike as Opposition Demands Resignations

Senior MPs call for ministers to step down after 36% US import duty announced; warn of severe economic fallout

 

The Thai government is facing intense scrutiny and calls for ministerial resignations after the United States announced a substantial 36% import tariff on goods from Thailand, set to take effect from 1st August.

 

Julapong Yukate, a list MP from the People's Party and Vice-Chairman of both the House Committee on Commerce and Intellectual Property and the House Committee on Foreign Affairs, confirmed the news today at Parliament. 

 

He condemned the tariff as evidence of "misguided policies and the complete inefficiency" of the current government's approach to international trade and foreign affairs.

 


"The government has recently changed the Minister of Commerce, thus absolving the former incumbent. However, the Ministers of Finance and Foreign Affairs have been in their posts from the outset," Julapong stated. "I therefore call on both the Minister of Finance and the Minister of Foreign Affairs to take responsibility by resigning from their positions. This would demonstrate that when politicians implement erroneous policies that harm the nation, they should resign without needing to be dismissed or removed."


 

Julapong criticised the Minister of Finance specifically, noting that since President Donald Trump took office in January, the opposition and the Commerce Committee have repeatedly urged the government to urgently negotiate with the US on import tariffs. 

 

Despite at least four meetings by the Commerce Committee, including input from private sector bodies like the Thai Chamber of Commerce and the Federation of Thai Industries, and a letter sent to the Prime Minister, no progress was made.
 

  

He highlighted that while the Minister of Finance adopted a 'wait and see' approach, claiming Vietnam's swift negotiations yielded no progress, Vietnam is now subject to only a 20% import tariff. "Therefore, the Minister of Finance has made a severe mistake," Julapong asserted.

 

The Minister of Foreign Affairs also came under fire for an "ineffective and sluggish" role in negotiations, with Julapong pointing out their failure to attend Committee clarifications and their inability to travel to the US due to an immigration issue related to the Uyghur case, which has reportedly hampered trade and diplomatic coordination.

 

Also today, Veerayooth Kanchoochat, Deputy Leader of the People's Party, responded to President Trump's Truth Social post announcing the new tariff. 

 

He described the situation as a "warning sign," with more dangerous stages ahead, likening it to Trump creating a "black hole" compelling trading partners to rush new offers to the US.

 

Veerayooth warned that the game is not yet over, and Thailand has not faced its "worst-case scenario." 

 

He expressed concern that without a strong negotiating stance before the 1st August deadline, the Thai government might concede too much to reduce the 36% tariff. 

 

Such concessions could include not just lower import taxes to open Thai markets but also other crucial areas like quality control, sanitary requirements, and even security policies.

 


"The government and relevant ministers should not solely focus on reducing the 36% tariff figure and short-term goals," Veerayooth stressed. "They must consider the long-term impact on the Thai economy and its people from what is traded away. Carelessness could lead to proposals that harm both Thai industry and agriculture."
 
 

He warned that the "worst case" would see Thailand "losing both ways," with reduced exports and increased imports, exacerbating domestic production decline and weakening Thailand's geopolitical bargaining power, potentially causing "economic scars" more severe than those from the COVID-19 pandemic.

 

Veerayooth outlined four key proposals:

(1) Support At-Risk SMEs and Workers: He urged immediate, proactive assistance for the 4,990 SMEs (employing over 500,000 people) identified by the Bank of Thailand as vulnerable to the tariffs. These include businesses in jewellery, agriculture, metal, and textiles. He called for a "mobile medical team" approach to directly address their varied needs, as "soft loans" alone are insufficient. He emphasised the unfairness of trade war shocks impacting these skilled entrepreneurs who have already navigated challenges from China, Vietnam, and COVID.

(2) Seriously Tackle Misdeclared Goods: Veerayooth highlighted that goods worth billions of baht are using Thailand as a transit point to conceal their true origin, often from banned countries, before being re-exported. He noted that only 28% of goods exported to the US require a Certificate of Origin, making it easy for misdeclared items to slip through. He called for a "major crackdown," including publicised raids on such factories, to signal that Thailand will no longer tolerate this behaviour.

(3) Revamp the Budget to Absorb Impact: He reiterated the People's Party's earlier warning during the 2026 budget debate that traditional budgeting is inadequate given the severe external risks from tourism and trade. He urged the government to fundamentally re-evaluate the 3.78 trillion baht budget, currently under parliamentary review, to align it with the changing situation and clearly define how it will be used to serve as an "iron rampart" for the Thai people during this turbulent period.

(2025/07/08-00:00)