Bangkok: “Sirikanlaya” is sounding the alarm for the Thai government to urgently address the implications of the US-imposed tariff wall, warning that inaction could lead to a GDP shortfall below the intended 2% target. The halt in investments has prompted plans for an urgent parliamentary discussion on April 9, prioritizing this matter over other issues like the entertainment complex.
According to Thai News Agency, the People’s Party, spearheaded by Deputy Party Leader Ms. Sirikanya Tansakul, along with party-list MP Mr. Sitthiphon Wibulthanakul and Deputy Party Leader Mr. Wira Yut Kanchanachuchat, convened a press conference to discuss the newly announced US tariff policy. On April 2, 2025, the US declared an increase in import tariffs on Thai goods by 36%, aiming to bolster state revenue in light of impending income tax reductions and to incentivize investors to return to the US.
Ms. Sirikanya highlighted that the trajectory of Thailand’s GDP in 2025 hinges on negotiation outcomes. She urged the government to act swiftly, warning that unsuccessful negotiations could shrink GDP by over 1%, dipping below the 2% target. A reduction in tariffs to 25% might see GDP fall by 0.8%, while a 10% tariff, as previously announced by Trump, could limit the decline to 0.3%. Key affected sectors include communication equipment, hard disk drives, tires, and electrical appliances. Additionally, company investments have been put on hold, pending resolution.
She advised the government and negotiation teams to push for a review of overlooked factors, such as the service balance, which presently favors the US. Mr. Wirayut proposed dissecting the impact into direct effects on US-reliant sectors like electronics and tires, constituting 19% of Thai exports, and indirect effects across global markets due to altered trade dynamics.
Mr. Wira Yut emphasized strategic negotiations, advocating for a calculated approach rather than immediate concessions. He suggested leveraging Thailand’s 166 non-tariff barriers and prioritizing mutually beneficial agreements, such as labor rights enhancements and strategic imports.
The government must transparently address the negotiation impacts, Mr. Wirayut insisted, to avoid the pitfalls of past trade liberalizations, like those with China, which blindsided affected parties. He stressed the need to envision a trading landscape sans the US and China to prepare for escalating trade tensions.
Mr. Sitthiphon urged expedited measures to manage the anticipated surge in Chinese imports. Despite ongoing discussions since September 2024, concrete actions, such as mandating foreign e-commerce operators to register legally in Thailand and bolstering product standards, remain pending. Enhanced customs inspections and support for entrepreneurs facing unfair competition were also highlighted as urgent needs.
Ms. Sirikanya plans to table an urgent motion on April 9, contending with the government’s agenda, which includes legislation on the entertainment complex business. Emphasizing the urgency of the tariff issue, she aims for open discussion on the severe and widespread ramifications for Thailand.
The Prime Minister has announced plans for talks with the US, though previous negotiations by the Commerce Minister failed to prevent the tariff hike. Ms. Sirikanya stressed the need for detailed communication to instill public confidence and ensure preparedness, especially among vulnerable SMEs. Continuous monitoring and direct government communication are essential for addressing the challenges posed by the new tariffs.