Trump’s victory will be a boon to Thai economy, says commerce minister

The upcoming United States presidential election will have a significant impact on global trade and economy, as policies proposed by both candidates are likely to intensify the trade war between the US and China, Thailand’s biggest trade partners.

Democrat candidate Kamala Harris has promised to raise the tariff on strategic goods, while Republican candidate Donald Trump promises a blanket tariff increase as well as a 100% tax increase on any country that stops tying its currency to the US dollar basket.

In an interview with Krungthep Turakij newspaper on Tuesday, Commerce Minister Pichai Naripthaphan said Thailand’s economy and international trade are likely to be affected more if Donald Trump wins the election.

“As the president, Trump would bring back his ‘America First’ policy that would spark a new round of the trade war with China,” he said. “Thailand, which has positive relations with both countries, will be a bridge between the two, serving as a manufacturing base for both American and Chinese manufacturers.”

Pichai said he expected the US economy to thrive more under Trump’s administration thanks to Trump’s solid background in stocks and investment, adding that Thailand must use this chance to increase the country’s attractiveness as an investment destination, as well as boosting international trade with new partners to expand potential markets.

Pichai said his ministry has been working to negotiate new free trade agreements (FTAs). Thailand currently has 15 FTAs with 19 countries.

Early next year, Thailand is expected to sign a FTA with the European Free Trade Association (EFTA), which is made up of four countries - Switzerland, Norway, Iceland and Liechtenstein, he added.

“Having more FTAs will attract more foreign investors to Thailand. Our neighbour Vietnam has so far signed 16 FTAs with 54 partners,” he said.