A leading company team predicted that Thailand’s economy and imports will grow less than expected this year as a result of US tariffs on Wednesday ( May 7 ), adding that the nation could gain market share in the US if a price decline was no secured.
According to the Joint Standing Committee on Commerce, Industry and Banking, Southeast Asia’s second-largest economy was now projected to grow between 2.0 % and 2.2 % this year, down from a previous forecast of 2.4 % to 2.9 % growth.
Exports, a key economic driver, were also seen growing by 0.3 % to 0.9 % this year, down from a prior forecast of 1.5 % to 2.5 % growth, while expected tourist arrivals were dropped to 36 million to 37 million, down from 39 million to 39.5 million.
Thailand is one of the Southeast Asian nations that has been hardest hit by US President Donald Trump’s trade policy, and if a lowering cannot be reached before July, it will face a 36 % tariff on shipping to its largest export business.
According to Kriengkrai Theinnukul, head of the group’s Federation of Thai Industries, the group’s representative, the economy could grow by just 0.7 % this year and lost export revenue could be 1.4 trillion baht ( US$ 43 billion ) over the next ten years.
Additionally, Kriengkrai said, there was a chance that additional nations might agree to better tariff words and stifle Thai exports to the US.
Last year, the US exported$ 55 billion worth of goods to Thailand for more than 18 % of that country. Washington has estimated a business gap of US$ 45.6 billion with Thailand.
Kriengkrai said company was also concerned about the baht’s strength, and that the government should take steps to ensure the currency does not depreciate very quickly or become overly volatile.  ,
Due to the impact of US taxes and a global decline, the finance department last year cut its forecast for economic growth this year from 3 percent to 2.1 %.
Since the pandemic, the group claims that Thailand’s sector has lagged local peers, adding to structural issues like family debt.