BANGKOK, Thailand – Prime Minister Phaethongtarn Shinawatra led a meeting on April 8 with multiple economic agencies to address the recent 36% tariff increase on Thai imports imposed by the Trump administration. The government has tasked Deputy Prime Minister and Finance Minister Phichai Chunhavajira with negotiating with the United States to find a solution. The U.S. has agreed to the meeting and will schedule a time accordingly.
The discussion focused on the potential economic impacts and ways to support affected businesses and citizens. One possible solution discussed was utilizing an existing compensation fund for international trade losses. Additionally, the government sees this situation as an opportunity to restructure Thailand’s economy and increase international trade in the long term.
Phichai explained that the U.S. has been experiencing a trade deficit with Thailand for over 30 years, with a current deficit of $2 billion. He noted that many countries with trade surpluses with the U.S. are also facing similar tariff increases. As part of the response, Thailand is considering tariff reductions on certain goods and exploring new opportunities for imports, such as U.S. corn and LNG, which are competitively priced.
The government also discussed the potential need to increase the public debt ceiling, currently set at 70% of GDP, to fund infrastructure investments and strengthen the economy in the long term. The Finance Ministry is also implementing measures like temporarily banning short-selling in the stock market to stabilize the economy amidst the uncertainty. (TNA)
