Private sector urges Thailand to restructure economy amid US tariff

The call was made during a roundtable session titled “Trump’s Global Quake: Thailand Survival Strategy”, hosted by Krungthep Turakij, Thansettakij, and PostToday at the Waldorf Astoria Bangkok Hotel on Wednesday.

Chanintr Chalisarapong, vice president of the Thai Chamber of Commerce (TCC), stated that the chamber is working closely with the government to address the impact of President Donald Trump’s tariff policy, which aims to reduce the US trade deficit and restructure global trade.

He warned that the reciprocal tariff could severely affect Thai exports, noting that Thailand exported goods worth 1.9 trillion baht to the US last year. “Negotiation is the only viable solution, and it must be comprehensive and well-prepared in every dimension,” he said.

Chanintr stressed that the negotiation strategy should focus on reducing the US trade deficit in order to maintain a balanced trade relationship with Thailand. In particular, he highlighted the tariff disparity on agricultural products, where Thailand imposes a 27% tariff on US imports, compared to the US rate of just 5%.

He suggested that Thailand increase imports of essential agricultural goods from the US, including maize, soybeans, beef, seafood, alcoholic beverages, vegetables, fruits and milk powder.

“However, the importation of certain agricultural products must be approached with caution, as it could negatively impact Thai entrepreneurs—especially in the case of pork, which the US is pushing Thailand to import,” he added.

Chanintr Chalisarapong, vice president of the Thai Chamber of Commerce

Chanintr also urged the government to establish a joint task force with the private sector to monitor developments in global trade, and to accelerate negotiations on free trade agreements with the European Union and Canada through ASEAN by the end of the year.

He concluded by recommending that Thailand resolve issues related to rules of origin, reduce unnecessary imports, and boost export growth.

Phaichit Viboontanasarn, vice chairman and secretary-general of the Thai Chamber of Commerce in China

Seeking bargaining power

Phaichit Viboontanasarn, vice chairman and secretary-general of the Thai Chamber of Commerce in China, highlighted that despite the trade deficit, the US enjoys an annual trade surplus of US$300 billion in the service sector with other countries.

He pointed out that many nations are currently engaged in negotiations to reduce tariffs, but warned that the US may impose additional taxes. As such, Thailand must carefully consider its position, he said.

Phaichit recommended that Thailand restructure its production processes to reduce dependence on exports to developed countries, while exploring new markets such as Africa and Latin America. He also suggested that the government establish funds to support the adaptation of industries to these new markets.

Furthermore, he advised the government to engage in negotiations with the US through the World Trade Organisation (WTO) and ASEAN to strengthen its bargaining power, while forming an economic team to ensure that the nation reaps maximum benefits.

Swaek Prakitritranon, general secretary of the Thailand Printed Circuit Association

Risk on printed circuit industry

Swaek Prakitritranon, general secretary of the Thailand Printed Circuit Association, stated that entrepreneurs in the printed circuit industry are planning to relocate their production bases to Thailand within the next two to three years, with investments exceeding 180 billion baht.

He explained that over 25% of these companies have already established their factories and begun production in Thailand. Most of the products are crucial for industries such as artificial intelligence, computers and semiconductors.

Swaek added that these entrepreneurs do not directly export to the US but instead supply assemblers within the same region.

He confirmed that demand for printed circuits remains strong, with growth projected to reach US$80 billion. Entrepreneurs have chosen to invest in Thailand due to the country’s stability and readiness in terms of infrastructure, he said.

However, he cautioned that Trump’s tariff policy could force entrepreneurs to relocate their production bases from Thailand to other countries with lower tariffs, such as Vietnam and Mexico. If the reciprocal tariff remains at 36%, it could impact up to 800,000 workers in the printed circuit industry, he added.

Sompop Euasongtham, secretary-general of the Thai Feed Mill Association

Importing animal feed

Sompop Euasongtham, secretary-general of the Thai Feed Mill Association, stated that Thailand's animal feed production capacity has increased by only 1.1% over the past seven years, leading to the need for imports of key production ingredients such as maize, cassava, and soybeans.

He anticipates that imports of maize from the US could help expand Thailand’s animal feed industry. However, he emphasised that domestic farmers must enhance their productivity and reduce costs. He also suggested that Thailand should consider reducing tariffs on imports of soybeans and soybean meals.

"Imports of maize, cassava and soybeans from the US, valued at 90 billion baht, could drive a 3-5% growth in Thailand’s animal feed industry," he said.

Sompop also warned that Thailand should carefully evaluate the potential imports of pork and pork offal, as these could negatively affect the domestic livestock industry.