The government will set aside about 200 billion baht in soft loans for small and medium-sized enterprises (SMEs), to cushion the impacts of new tariffs on import of Thai goods to the US market.
Finance Minister Pichai Chunhavajira, chief of the team negotiating tariffs with the US, said that it is not a “win-win” but a zero sum game between Thailand and the US, with the US having the upper hand in narrowing the trade gap with Thailand.
As such, he said that Thailand has little choice but to open its domestic market to US imports and to remove import duties currently levied on many imports from the US agricultural, automotive and energy sectors, estimated to account for 90% of the value of US imports to Thailand.
Citing the importance of the new round of negotiations, and the fact that the government will have to inform parliament of its tariff proposals to the US, Pichai said that he hopes there won’t be any political changes in Thailand which could impact the forthcoming talks, expected to take place ahead of the US-imposed August 1 deadline.
In addition to the 200 billion baht in soft loans, the finance minister disclosed that the government will tighten controls on the transshipment products through Thailand to the US.
Meanwhile, Samphan Silpanart, president of the Electronics and Computer Employers Association, claims that a major semi-conductor company in Thailand, currently hiring more than 3,000 researchers, half of whom would be Thai nationals, has announced the indefinite postponement of its investment plan while awaiting the outcome of the US tariff negotiations.
The US is to impose a 36% reciprocal tariff on the import of all Thai goods to the US market from August 1st.
Thanakorn Kasetsuwan, president of Thai National Shippers Council, has called on the government to review the minimum wage, claiming that the new rate does not reflect the current economic situation.
