Thailand May Face Economic Losses of Up to $8 Billion Due to U.S. Tariffs, Official Reports

Thailand could incur losses of $7 billion to $8 billion due to possible U.S. tariffs. Senior officials have outlined a strategy to negotiate and work towards narrowing the trade surplus.

The strategy includes diversifying export markets, enhancing the competitiveness of Thai products, and fostering stronger economic ties with other nations. Officials are also exploring ways to boost domestic consumption and reduce reliance on export-driven growth, aiming to mitigate the impact of external economic pressures.

Thailand could face a $7 billion to $8 billion setback from potential U.S. tariffs if trade levies are equalized. Senior officials, including commerce ministry representative Vuttikrai Leewiraphan, highlighted concerns about impending tariffs on Thai semiconductor exports, which could reach 25%.

To mitigate this impact, Thailand plans to enhance imports of corn, soybeans, crude oil, and ethane, aiming to reduce its significant trade surplus with the U.S. Last year, this surplus stood at $35.4 billion, while the U.S. reported a $45.6 billion deficit with Thailand.

Additionally, foreign ministry official Sirilak Niyom expressed readiness for trade negotiations, noting that Thai investments in the U.S. total $17 billion, contributing to sectors like food and real estate, and supporting 11,000 jobs.