Trump administration brings new challenges for Thai business

Donald Trump’s victory in the 2024 US presidential election on Wednesday will result in a clear shift in the global order, with significant changes for which Thai businesses must prepare, the Thai National Shippers' Council (TNSC) said on Wednesday.

Under Trump’s America First policy, global trade will become more divided, with the two major power blocs – the US and China, becoming even more distant, TNSC chief Chaicharn Charoensuk said.

“Thai businesses, especially exporters, must quickly adapt to the changing situation, as other external factors could create unpredictable direct and indirect impacts at any time,” he said.

With a new round of the US-China trade war on the horizon, Chaicharn said Thailand needed to create an investment climate that would spur the relocation of manufacturing bases from China, as well as positioning the kingdom as a regional logistics hub.

“Thailand must become an integral part of the supply chain that is shifting to this region, not just within Thailand itself, but also within Asean and India,” he said.

The TNSC chief also urged Thai businesses to seek new markets to compensate for the impacts of the new US foreign trade policy.

“For example, if the US adopts policies that turn against electric vehicles and focus on internal combustion engine vehicles, this could present an opportunity for Thailand to expand its automotive parts exports to North and South America,” he said.

Chaicharn added that Thailand’s foreign trade negotiations moving forward will need to consider impacts from all sides, as the issue will become more sensitive due to the division of major power blocs.

“Thailand will need to remain neutral just as we have been in the past, but now we also need to protect our own market from the influx of cheap Chinese imports by implementing a strict screening policy as well as helping local manufacturers reduce their costs through the use of new innovations,” he said.