BANGKOK, Thailand – The Federation of Thai Industries has proposed a two-tiered negotiation strategy for potential U.S. reciprocal tariffs, suggesting a 40% rate for transshipped goods and 20% for local production.
Wiwat Hemmondharop, Vice Chairman of the Federation of Thai Industries (FTI), stated that Thai industries would be significantly impacted if a U.S. reciprocal tariff is maintained at 36 percent. He identified the steel, aluminum, clothing, and furniture sectors as being particularly vulnerable. Mr. Wiwat also clarified that the FTI does not agree with a complete elimination of import tariffs on U.S. goods.
He noted that exports are likely to slow in the second half of the year because the United States has already accelerated its imports. Additionally, the issue of Chinese goods flooding the market is expected to negatively affect Thailand’s manufacturing sector. Therefore, the FTI has proposed that “Team Thailand” negotiate a two-level tariff system, which includes a higher rate for goods using Thailand as a transit point and a lower rate for items genuinely made in the country. (NNT)
