Thailand keeping a close watch on policies of Trump administration

The Office of the National Economic and Social Development Council (NESDC) is closely monitoring the official policy statements of US president-elect Donald Trump to see if they align with his campaign promises.

"In a recent head of government departments meeting, the NESDC informed attendees to stay alert and prepare clarifications in case the US starts imposing trade restrictions, as Thailand could potentially be affected. Thailand had faced scrutiny during previous trade protection measures as well," they stated.

Meanwhile, Minister of Commerce Pichai Naripthaphan revealed that he had met with directors of 58 overseas trade promotion offices and 72 provincial commerce offices to analyse the economic and trade situation. He emphasised the need to address urgent issues following Trump’s election win, which could influence global trade policies, and urged the exploration of new trade and investment opportunities.

He said that this situation could benefit Thailand, which should maintain a neutral stance, positioning itself as the "Switzerland of ASEAN", an appealing destination for trade and investment.

Past trends indicate that the value of Thai exports in various sectors increased during trade wars, as US imports from China declined, with Thai products filling this gap. It is expected that Thailand’s exports to the US could increase further, reflecting a 15% growth in exports to the US, while American imports from China have continued to decline.

Chaichan Charoensuk, president of the Thai National Shippers’ Council, noted that Thailand should learn from the initial trade war seven years ago, where it was not directly involved but saw a seven fold increase in electronics exports, a two fold increase in tyre exports, and a two fold increase in steel exports to the US. This demonstrated Thailand’s ability to maintain trade neutrality.

Looking forward, he said, the new trade war remains unpredictable due to constant changes, so Thai businesses must adapt proactively. This includes fostering a conducive investment climate to attract production relocations and establishing Thailand as a logistics hub to support supply chain movements across upstream, midstream, and downstream sectors within ASEAN, accommodating potential shifts in production bases.