The Bank of Thailand has cautioned that the country may face prolonged and uncertain economic challenges due to the United States’ tariff policy.
At a press briefing on Friday, Governor Sethaput Suthiwartnarueput said the full effects of the tariffs are expected to become clearer in the second half of the year. He warned that if Thailand fails to negotiate a reduction before the expiration of a global moratorium in July, it could face tariffs as high as 36%.
Thailand, which was among the Southeast Asian nations most affected by U.S. trade measures during the Trump administration, counts the United States as its largest export market. In 2023, exports to the U.S. made up 18.3% of Thailand’s total shipments, valued at $54.96 billion. The U.S. trade deficit with Thailand stood at $45.6 billion.
Suthiwartnarueput highlighted that the country’s manufacturing sector would bear the brunt of the tariffs, though he noted the impact would not match the severity experienced during the COVID-19 pandemic. He also warned of a potential surge in imports into Thailand as trade diversion effects increase.
Edited by Nzubechukwu Eze.
