Thailand may need US$15 billion of stimulus to cope with US tariffs

[BANGKOK] Thailand may need at least US$15 billion for economic stimulus measures to address the impact of US tariffs, its finance minister said on Wednesday (Apr 23).

The measures will focus on boosting domestic consumption and investment, as well as providing soft loans, Pichai Chunhavajira told reporters.

Thailand is among South-east Asian nations hardest hit by US President Donald Trump’s measures, facing a 36 per cent tariff if a reduction can’t be negotiated before a global moratorium expires in July.

The country’s negotiations with Washington on the tariff were postponed because the United States has asked Bangkok to review important issues.

The government is closely monitoring the situation and is prepared to implement measures to stimulate the economy and maintain growth levels, Pichai said.

Discussions with relevant agencies, including the National Economic and Social Development Council and the Bank of Thailand, are ongoing on the measures, which will be funded from several sources, he added.

SEE ALSO

US pushes Thailand to fix trade ‘issues’ as tariff talks delayed

Asean Intelligence

Get insights into businesses across South-east Asia

Get the free report

“The economic stimulus package will have to be large enough to create momentum,” Pichai said.

When the 36 per cent tariff was announced this month, Pichai had said it could cut growth in South-east Asia’s second-largest economy by 1 percentage point.

The economy grew just 2.5 per cent last year, lagging regional peers. REUTERS