Industry body warns of up to 900 billion baht in losses, urges Bangkok to accelerate economic reforms and bolster trade competitiveness
Thailand’s export sector is facing a severe blow after the United States officially announced it would implement a substantial 36% import tariff on all Thai goods, effective 1st August.
This anti-dumping duty is considerably higher than private sector predictions and exceeds the rates imposed on regional rivals like Vietnam (20%), Indonesia (32%), and Malaysia (25%), highlighting Thailand’s increasingly disadvantageous competitive position.
Kriengkrai Thiennukul, Chairman of the Federation of Thai Industries (FTI), warned that the US decision could have a devastating impact on Thai exports, particularly industries heavily reliant on the American market.
These include processed foods, agricultural products, automotive parts, electrical appliances, electronics, textiles, gemstones, steel, and aluminium.
He estimates the potential damage to Thai exports could range from 800 billion baht to 900 billion baht.
“Although Thailand’s initial proposal was submitted on 6th July and signed off the following morning, which may have conflicted with the US announcement, we have now sent a second, more comprehensive proposal,” Kriengkrai explained. “This revised offer significantly differs from the first, notably in the number of product categories for which we’ve proposed a 0% tariff, encompassing thousands of items. While we await a response, we believe that a reconsideration of this new, enhanced offer by the US should lead to a positive outcome.”
In response to the escalating uncertainty, the FTI will hold urgent internal meetings with its 47 industry groups and 11 clusters to assess the specific impact on each sector and formulate appropriate mitigation strategies.
Subsequently, the Joint Standing Committee on Commerce, Industry and Banking (JSCCIB), which represents Thailand’s three key private sector institutions, will urgently convene with government agencies to establish further defensive measures.
Source: The Nation