BANGKOK, Thailand – Thailand’s Investment Analysts Association (IAA) warns that potential U.S. tariffs exceeding 20 percent could shock the nation’s capital and business markets amid ongoing political uncertainty.
IAA Secretary-General Sombat Narawutthichai commented on the ongoing tax negotiations with the United States. He referred to the delegation led by Deputy Prime Minister and Finance Minister Pichai Chunhavajira, which is seeking a resolution before the July 9th deadline. Sombat stated he expects a swift conclusion as the deadline approaches.
He explained that the market is anticipating an import tariff rate between 15 and 20 percent. However, a tariff higher than this level could significantly shock both the stock market and the wider business sector. While a conclusion is expected by July 9th, he suggested that if negotiations are prolonged, the U.S. might impose a temporary tariff and extend the deadline by another 30 days.
Sombat acknowledged that the domestic political situation is severely impacting investor confidence due to many unforeseen events. He said stakeholders must watch to see if the government can successfully implement measures to stimulate the economy. He added that a potential interest rate cut could be a positive factor for investors, who must monitor various economic indicators that affect the performance of publicly listed companies. (NNT)
