Bangkok (VNA) - The Thai Chamber of Commerce (TCC) is calling on the government to establish a "war room" to address tariff threats from the administration of US President Donald Trump.
The TCC insisted the Prime Minister must chair this task force, comprising both public and private sector representatives, to formulate a proactive strategy against a possible resurgence of protectionist policies under the Trump 2.0 administration.
Sanan Angubolkul, Chairman of the TCC and the Board of Trade, expressed his deep concern, stating that businesses are apprehensive about potential US trade policies.
He anticipates a shift towards new markets, with ASEAN and Thailand becoming increasingly crucial, particularly for electronics, electrical appliances, automobiles, industrial goods, consumer products and agricultural and food products.
The Chamber emphasised the necessity for stringent import controls, particularly for substandard or low-priced goods that undermine fair competition.
Sanan called for rigorous import standard checks, mandatory certifications, and thorough verification of product origins to prevent counterfeiting and tax evasion.
He also demanded robust enforcement against predatory pricing and dumping, and a review of competition laws to reflect the current economic climate.
TCC Vice Chairman Poj Aramwattananont highlighted the need to address the trade imbalance by increasing imports from the US, particularly in agriculture, food and energy.
He suggested a reform of Thailand’s import tariff quotas with the US to ensure a balanced and robust negotiating position.
Moreover, he stressed the importance of analysing the service sector's trade deficit, including digital services, management fees, copyrights, banking, insurance, education and franchise fees, for a comprehensive understanding of economic relations.
Thanavath Phonvichai, President of the University of the Thai Chamber of Commerce, warned of severe economic consequences of failing to act swiftly.
He outlined the potential indirect impact of US tariffs on Canada, Mexico, and China, estimating a 20-25 billion THB loss and a 0.1-0.5%reduction in GDP.
Tariffs on automobiles could result in a 60-65 billion THB loss and a 0.35-0.4% GDP decrease, potentially limiting growth to 2.6-2.8% this year.
Furthermore, Thanavath reiterated Sanan’s warning that global tariffs imposed by the US could inflict a minimum loss of 100-150 billion THB, reducing GDP by 0.5-0.7%, and lowering economic growth to 2.3- 2.5%.
In 2024, preliminary data indicated a surplus of approximately 45.6 billion USD, moving Thailand from the 12th to the 11th largest surplus holder with the US./.
