Thailand says US tariff talks to factor in high Chinese levy
Nearly 71% of Thai CEOs fear cheap Chinese imports could shut local factories
[BANGKOK] Thailand’s tariff talks with the Trump administration will factor in the impact of the high taxes slapped on China as local producers fret over the risk of an increase in the influx of cheap imports from the Asian neighbour, according to officials.
Thailand has sought to placate the US by offering to buy more natural gas, farm goods and planes besides lowering import duties to cut its nearly US$46 billion trade surplus with Washington. But President Donald Trump’s move to further raise tariff on China to 125 per cent while ordering a 90-day freeze on other nations poses a fresh threat to Thailand’s local manufacturing industry.
Thai Finance Minister Pichai Chunhavajira on Thursday (Apr 10) welcomed the US announcement of 90-day tariff suspension, saying the window should allow the two countries to work out a mutually beneficial deal. Talks will focus on achieving a balance in Thailand’s trade with the US and other partners, he told reporters in Bangkok.
A survey of chief executives of Thai companies released on Wednesday showed that almost 71 per cent of the participants were worried about cheap Chinese goods flooding Thai markets, leading to lower use of production facilities or more factory closures.
Thailand’s negotiating strategy will take into account the higher US tariff on China as it presents both opportunities and challenges, Pichai said adding it could also hurt the nation’s manufacturing and employment.
“The two countries will no longer trade, or reduce trade,” Pichai said. “There will be a shortage of some products, that will create opportunities for us.”
Chinas has emerged as Thailand’s largest trade partner in recent years with its trade deficit with Beijing ballooning to US$45 billion in 2024 from about US$19.6 billion in 2018, according official data.
Prime Minister Paetongtarn Shinawatra said 90 days would be enough for all countries to hold talks with the US and her administration will be better prepared when its turn comes. She said no dates have been set for talks which will be led by Pichai though the US has acknowledged its outreach.
Pichai was ready to lead a delegation the US as soon as next week, and Thailand is hopeful that the two countries can reach “a win-win solution” through talks, Foreign Ministry spokesman Nikorndej Balankura told a briefing. BLOOMBERG
Share with us your feedback on BT's products and services
