Thailand has 'strong plan' to handle US tariffs, hopes to negotiate: PM
Thailand's Prime Minister Paetongtarn Shinawatra speaks during a press conference after a special cabinet meeting at the Government house in Bangkok, Thailand, on Sep 7, 2024. (File photo: REUTERS/Athit Perawongmetha)
BANGKOK: Thailand has a "strong plan" to handle swingeing new trade tariffs imposed by United States President Donald Trump and hopes to negotiate a reduction, the country's prime minister said on Thursday (Apr 3).
Paetongtarn Shinawatra said the government would take steps to mitigate the impact of the 36 per cent levy announced by Washington as part of sweeping tariffs that have sent global markets tumbling.
Trump escalated his trade war on Wednesday with 10 per cent tariffs on imports from around the world and harsh extra levies on key trading partners.
Southeast Asian countries with a significant trade surplus with the US came in for harsh treatment, with Vietnam being hit with a 46 per cent levy and Cambodia 49 per cent.
"We have a strong plan," Paetongtarn told reporters.
"We have prepared several steps, including sending our permanent secretary to talk with them ... I think we can still negotiate."
Trump dubbed his announcement "Liberation Day", saying it would bring wealth to the US, but allies immediately criticised the move and markets took fright.
Thailand's Deputy Finance Minister Julapun Amornvivat said the government was not surprised to be hit with tariffs, though the level was higher than anticipated.
"We have to negotiate with understanding, not aggressive talk, but we have to talk which products they feel are unfair and we have to see whether we can adjust," he said in a video interview posted online.
Finance ministry officials will meet to discuss steps to mitigate the immediate impact, he said, as well as drawing up guidelines for future negotiations.
"The goal is to develop a trade balance proposal that is substantial enough to incentivise the US to engage in negotiations with Thailand, ensuring minimal disruption to farmers, consumers, and businesses," Paetongtarn said in an X post on Thursday.
The Thai government is ready to discuss trade balance adjustments with Washington at the "earliest opportunity", she said.
But analysts were sceptical.
"Thailand's negotiations may be ineffective since every country is affected by the tariffs," Jitipol Puksamatanan, Head of Global Investment Strategy at Finansia Syrus Securities, told AFP.
He suggested that Thailand should seek to expand exports to other countries, such as China.
Investment house CGS International said in a briefing note that it expected the tariffs to wipe between 0.9 and 1.2 per cent off Thai GDP in 2025.
Paetongtarn, whose father Thaksin Shinawatra was prime minister in the wake of the late 1990s Asian financial crisis, hosts her Indian counterpart Narendra Modi on Thursday.
The pair will hold talks ahead of a summit on Friday of the BIMSTEC group of mostly South Asian countries plus Thailand and Myanmar, whose junta chief is making a rare foreign trip to attend.
