Indonesia’s Prabowo asleep at the wheel on Trump tariffs – Asia Times

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JAKARTA – One week since President Donald Trump’s “Liberation Day” tariffs threw the global economy into turmoil and Indonesia’s government seems to have been caught flat-footed.

Adopting the same conciliatory position as most of ASEAN, the country is looking for a tariff-easing deal. But, with domestic economic policymaking chaotic and the foreign ministry adrift, forming a coherent response may be difficult for Southeast Asia’s biggest economy.

Indonesian stocks dropped more than 9% today (April 8) as trading resumed for the first time since March 27 and recovering after a 30-minute halt. The rupiah fell as much as 1.8% versus the dollar in early trading, closing in on a record low, while bonds also slumped.

There seems no easy way for Indonesia to absorb its Trump-assigned 32% tariff. The apparel and footwear industries will both be hit hard. Nike and Adidas, between them, have about half their labor force stationed in Indonesia. The furniture industry, which exports about half its product to the US, will also likely be driven to the wall.

Comparatively, Indonesia has not taken the hardest direct hit. With a large domestic market, the country’s export-to-GDP ratio stood at 24.5% in 2023. That year, only 9.35% of its exports by value went to America.

Exports of commodities like coal, palm oil and metals go largely to China, Japan, India, and other Asian countries, which make up a large percentage of Indonesia’s total exports.

Compared to Vietnam – which is facing 46% tariffs, has an export-to-GDP ratio of 87.2%, and sent 27.8% of its export’s total value to the US in 2023 – Indonesia’s tariff crisis is less severe.

Still, the challenge should not be underestimated. A global recession, which seems increasingly likely, would depress Indonesia’s crucial commodity exports.

And while Indonesia is not as export-dependent as others, they do play a vital role in earning the dollars it needs to sustain its imports of crucial items, including fuel and food.

“Yes, Indo is less exposed to tariffs,” notes Siwage Dharma Negara, co-coordinator for the Indonesia Studies Program at ISEAS. “But its exports contribute to foreign exchange reserves, which will be depleted quickly. We need to anticipate more pressure on the rupiah. This, in turn, will have an adverse impact on its imports of critical inputs and raw materials.”

Facing this difficult situation, Indonesia has reacted like much of ASEAN by quickly looking for a deal. “We will also open negotiations with America. We will say: ‘We want a good relationship. We want a fair relationship. We want an equal relationship,’” President Prabowo Subianto told journalists April 7 in his first public comments on the matter.

It seems Indonesia is looking to coordinate with Malaysia or perhaps ASEAN writ large, with Prabowo discussing the matter with Prime Minister Anwar Ibrahim, who currently is the rotational chair of the bloc.

“Not retaliating is the overall strategy from ASEAN countries, hoping Trump will be willing to make exceptions,” explains Dewi Fortuna Anwar, co-founder of the Foreign Policy Community of Indonesia.

“Trump is committed to protect the US market, but like the Godfather he’ll likely be more generous to those willing to kiss the ring. As SEA is the epicenter of US-China rivalry, Trump will probably not want to push the region completely into the China orbit. But some kowtowing will be required.”

Trade negotiations could prove tough, though. Trump has signaled resolve to stick to the tariffs despite plunging stock markets and his goals seem quixotic, if not unreachable. Speaking to reporters recently, Trump said he would not strike any deal to cut tariffs unless it also eliminated the US trade deficit with that country.

Meanwhile, Indonesia’s chaotic governance may leave it struggling to deal with the extremely difficult task of managing both the domestic economic fallout and trade negotiations with the US administration.

Notably, Indonesia does not currently have an ambassador in Washington DC and has not had one for two years. Speaking off the record, senior civil servants talk of entrenched dysfunction at the foreign ministry.

Speaking with a now-retired veteran diplomat, this writer commented that Indonesia seemed to have been caught with its pants down on the tariff announcement. “If any pants all,” came the dry reply.

Part of the problem is that President Prabowo fancies himself an international statesman, spending roughly one-third of his first 100 days on marathon trips abroad, mostly to attend summits.

As foreign minister, instead of the veteran diplomat, Prabowo appointed his extremely inexperienced aide Sugiono – a move widely seen as meant to allow Prabowo to dictate foreign policy to a junior who is dependent on him.

The result has been disorganization internally and embarrassing botches externally. Most notably, Indonesia seemed so desperate for new deals with China that it briefly appeared to acknowledge China’s claims to Indonesian territorial waters soon after Prabowo’s inauguration. None of this augurs well for managing Trump.

As for domestic economic policy, Indonesia was starting to struggle economically well before the tariff announcement, in large part due to erratic policymaking.

Structural factors like weakening consumer spending and a rupiah hitting lows last seen during the pandemic have been exacerbated by fears about the government’s populist spending policies.

The government has slashed huge swathes of the state budget to channel money into a school meals program. And a new holding company for state-owned enterprises (SOEs) that lacks parliamentary scrutiny and reports to the president has sparked fears of a 1MDB like-scenario.

The result has been foreign capital flight at alarming rates. A market crash in mid-March saw trading briefly suspended on Indonesia’s stock exchange.

Rumors swirl that Finance Minister Sri Mulyani Indrawati, seen as key to the government’s bids to maintain credibility with markets, and Coordinating Minister for Economic Affairs Airlangga Hartarto attempted to resign but were turned down.

Both ministers have denied the claims. However, sources with purported knowledge of the requested resignations claim otherwise.

All this bodes ill for dealing with Trump. One way to deal with Trump’s tariffs would be to seek new markets for Indonesia’s exports. Signing a long-delayed trade deal with the European Union and deepening integration with ASEAN would be two quick wins.

Such moves would likely find some of their strongest support in the government from figures like Sri Mulyani and Airlangga – whose standings have apparently been weakened.

Another, perhaps likelier possibility, is that Indonesia will default to its usual highly protectionist instincts – even if this proves self-defeating.

Worries about cheap Chinese imports destroying local manufacturers were already ubiquitous before Trump’s tariff bomb. As tariff-hit Chinese businesses desperately seek markets outside the US, it seems like worries about this – and pressure to block imports – will grow.

Prabowo himself has fundamentally autarchic economic instincts. Coming into office, he declared food and fuel self-sufficiency as top policy priorities.

Speaking on economic issues at international summits, he has often displayed a Trumpian suspicion of trade, suggesting Indonesia is exploited by trade partners and made vulnerable to outside shocks. Trump’s tariffs could seem to Prabowo as confirmation of such views – and push him deeper toward dangerous notions of self-reliance.

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Tokyo’s Nikkei index up 5.8% as US tariffs fuel volatility

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Trump retaliated on Monday, saying he was” no looking” at any delay in the application of tariffs. However, brokerage firm Monex stated in a note that” NVidia’s stabilization and the 2.7 % rise in the Philadelphia Semiconductor Index ( SOX ) are expected to trigger buybacks in Japan’s high-priced, semiconductor-heavyContinue Reading

China-led anti-US tariff pact bruited as Trump 50% deadline looms – Asia Times

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After US President Donald Trump threatened to impose an additional 50 % tariff on Chinese goods on April 9 if China didn’t meet his deadline and retracted its announced 34 % on American products by April 8, tensions between Beijing and Washington grew.

Trump said in a blog on his Truth Social bill on Monday that “if China does not remove its 34 % improve above their now long-term buying abuses by tomorrow, April 8, 2025, the US will impose more tariffs on China of 50 %, effective April 9”. Also, all discussions with China regarding their scheduled meetings with us will be ended!

Trump claimed in another article that China is the biggest state that evades tariffs. He criticized China for increasing its “long-term ridiculously high tariffs” by 34 % for American goods, as well as for failing to honor his warning to abusing nations to avoid retaliation.

Trump stated on April 2 that the US would establish a 34 % tax on Chinese goods, a similar tax having been applied to goods from China for the past few years. His mathematics is undoubtedly questionable. Trump has increased US tariffs on Chinese goods by 54 % since he stepped down as president on January 20 in addition to the 20 % tariff that was announced in February and March.

On April 4 night, China announced 11 punitive measures, including a 34 % tax on all British goods, sanctions against 11 US businesses, and rare earth export controls to the US.

A round-table discussion with representatives of more than 20 US companies, including Tesla, from China’s Ministry of Commerce on Monday urged them to “make moral voices and take rational actions to simultaneously maintain the stability of international production and supply chains and promote win-win assistance.”

Beijing also urged nations affected by Trump’s mutual taxes to unite and combat US unilateralism.

In a press briefing on Monday, Lin Jian, a spokesperson for the Chinese Foreign Ministry, said that the United States ‘ arbitrary imposition of tariffs amounts to denying all nations, especially those in the Global South, their right to growth.

According to World Trade Organization data analysis, the US price increase will widen the gap between rich and poor countries, with less developed nations suffering a more considerable impact, according to he said. This is a typical example of economic bullying, isolationism, and unilateralism.

” Countries should uphold the rule of extensive discussion, joint commitment, and shared benefits, adhere to genuine globalism, jointly oppose all forms of unilateralism and protectionism, protect the international system with its core at the UN, and prevent the multilateral trading system with its core,” the WTO stated.

Lin’s remarks came as Hong Kong’s Hang Seng Index, the benchmark stock market benchmark for the country, dropped 3, 021 points, or 13.2 %, to close at 19, 828 on Monday. Hong Kong experienced its biggest single-day decline since 1997.

On Monday, the Shanghai Composite index, the weighted index on the Taiwan Stock Exchange, dropped 245 points or 7.34 % to 3,096, while the Taiex, the weighted index, dropped 2 065 points or 9.8 % to 19, 232.

Within two days of Trump’s “reciprocal tariffs” announcement on April 2, the Dow Jones Index dropped 4, 010 points, or 9.4 %, to 38, 274.

Trump said on Sunday,” I don’t want anything to go down, but sometimes you have to take medicine to fix something,” when asked by a journalist to comment on the “pain threshold” and the decline in the US stock market.

He added that nations in Europe and Asia were “dying to make a deal” with the US.

Countries like Vietnam and Israel have vowed to revoke all tariffs that have been imposed on American goods since April 2. Ursula von der Leyen, president of the European Commission, stated on Monday that the EU had offered the US a “zero-for-zero” deal to end tariffs on all industrial goods as part of the trade negotiations. &nbsp,

” Forming an alliance”

Chinese commentators also urged “victims of Trump’s tariffs” to come together and jointly reveal strong countermeasures.

” It’s true that some nations are attempting to reach a compromise with the US by imposing zero-for-zero tariffs. However, this is a foolish decision, according to Chinese economist Pan Helin in a piece. ” Zero-for-zero tariffs won’t help to reduce the United States ‘ trade deficit. The US only desires that the businesses in the countries cited relocate to America.

If the US still wants to confront China, Pan claims that China must form and lead an anti-US alliance to force the US to leave the world’s trade system.

According to Xiao Zhifu, a researcher at the Kunlunce Institute, a Chinese think tank, Trump’s tariffs appear unorganized but are actually precise attacks on China.

” The US saw its trade deficit significantly increase by 14 % to US$ 1.21 trillion in 2024. He claims that China came in first place in terms of trade surplus with the US, behind the EU and Mexico. Trump wants to earn$ 600 billion from the new tariffs, about a quarter of which will be imported from China.

He asserts that Beijing must form an alliance with as many nations as possible in order to combat the US, despite the fact that it’s unlikely that Washington will ease tariffs on China.

China can ally itself with the Shanghai Cooperation Organization members and the BRICS countries in opposition to Trump’s tariffs, claims Zhou Xiaoming, a Guancha.cn columnist. He asserts that China should strengthen trade ties with Saudi Arabia, Russia, Brazil, India, Indonesia, Malaysia, and India. &nbsp,

‘ Map cannon ‘ versus’bathrooms’

Trump already imposed an average 20 % tariff on all Chinese goods during his first US-China trade war, which he started in 2018. Many Chinese manufacturers were forced to relocate their manufacturing facilities to Southeast Asian nations and Mexico, or to ship their goods from outside the US to the country via third countries.

The US-China Economic and Security Review Commission ( USCC), an independent body of the US government, stated in a report to the Congress in November 2023 that” a growing number of suppliers in overseas markets are owned by Chinese entities who also seek to evade trade restrictions by setting up facilities overseas, particularly in other parts of Asia and Mexico. ” US exposure to China also increased as a result of transshipping goods through third countries.”

Chinese companies have successfully lowered the negative effects of the US trade war in 2018 on them by setting up “bathing bases” overseas to assemble their semi-finished goods or putting” Made in Vietnam” labels on them and re-export them to the US, according to Chinese media and commentators.
 
Trump introduced the “reciprocal tariffs” ( regional attacks ) in response to this, according to the Hong Kong media, on 180 nations, including some uninhabited volcanic islands close to Antarctica. &nbsp,
 
The term” Map cannon” refers to a situation in video games where a player strikes an enemy repeatedly within a given area of a map. Additionally, it is a slang term used to slam a netizen’s careless comments that stereotype a community.

The latest tariffs, according to Hong Kong newspapers, hit Washington’s military allies, including the EU and the UK ( 10 % ), technology partners, such as Japan ( 24 % ), South Korea ( 25 % ), and Taiwan ( 32 % ), as well as manufacturing goods suppliers, such as Cambodia ( 49 % ), Vietnam ( 46 % ), Thailand ( 36 % ), India ( 26 % ), Sri Lanka ( 44 % ), and Pakistan ( 29 % ).

Yong Jian contributes to the Asia Times. He is a journalist from China who has a focus on Chinese politics, technology, and politics. &nbsp,

Read: China claims to be prepared and able to fight Trump’s trade war.

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GE2025: ‘Flight to safety’ has worked for PAP before but worries over US tariffs may not have the same pull, say analysts

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The poll may be affected by the “flight to security,” as it has been in the past, but this result is a given because the voter is different and has changed.

Social scientist Teo Kay Key, a research fellow at the Institute of Policy Studies ( IPS) Social Lab, said that while it is human nature to travel to security when they see danger, what might mean for security may have changed over time.

She said the public will take into account several factors, including the world state of affairs, parties ‘ brand and plan stances, the PAP’s performance, MPs ‘ performance in opposition, provincial issues, and diversity in parliament.

Politicians “probably need to consider that the ballot decision is varied and that there is a need for genuine communication” said Dr. Teo in their communication with voters.

Sociologist Tan Ern Ser argued that Singapore’s “flight to health” attitude was akin to the” life philosophy” that said it is vulnerable and may take its success for granted since the time of its founding prime minister Lee Kuan Yew.

However, the social environment has since become more polarized, with supporters of” those who support a trusted, solid government that provides security to the citizens” and those who “believe in social diversity and checks and balances on common policy and governance.”

It would be more difficult for the PAP authorities to persuade those who had formerly voted for resource enhancement and the rising living standards to continue with it, according to Dr. Tan, who serves as the IPS Social Lab’s alternative principal research fellow.

Instead, voters may cast ballots based on perceptions of a lack of affordable accommodation and the rising cost of living, and interpret geography as “fearmongering,” he said.

Although previous election results suggested a “flight to the familiar,” Assoc Prof. Chong argued that it’s a bargain whether or not this is actually protection. More of the same may be fine, he says. Although that was once a habit among Singaporeans citizens, there is no guarantee that it is.

Singapore must now be able to navigate unknown waters that it hasn’t recently encountered since democracy in ways that affect native bread and butter issues, he added.

” Geography 2025 does not just been about laying out and identifying the risks Singapore faces directly and their local spillovers; it will also include developing a solid plan that all Singaporeans is adopt.”

Back DARK CLOUDS

The General Election of this year won’t be the first to take place in the midst of international political and economic uncertainty.

No longer after the terrorist attacks of September 11, 2001, GE2001 was held in the US. The PAP won 82 of the 84 chairs and 75.29 percent of the popular vote at the time. This was its highest voting promote since 1980.

The PAP won 83 out of 93 tickets during the COVID-19 crisis thanks to GE2020. It received 61.24 percent of the popular vote, which is a decrease of about 9 percentage points from the past GE and the lowest vote since 2011. The ruling party also lost a historically next GRC.

Dr. Teo, a representative from IPS Social Lab, claimed that the polls conducted at various stages of Singapore’s social background and the individual crises were likely not the same as those conducted in the two elections.

Opposition functions were still in their early stages of development during GE2001, with none of them ever winning a Group Representation Constituency. The terrorist strikes ‘ aftermath was a developing condition, and the answer was intended to combat external threats.

Therefore, the voters would have preferred a choice that resembled “flight to health” in its purest sense. However, we also see the two opposition Members keeping their chairs, which meant it was more about wanting things to stay the same, she said.

GE2020, in comparison, occurred about a year after the pandemic, when the virus’s prevention measures were in place. Opposition events were also more well-organized and established, with a few gaining more clout than they did in 2001, according to Dr. Teo.

GEOPOLITICS AND DAY LIFE

In a January survey of 1,310 Singapore conducted by Blackbox Research’s SensingSG, inflation and living costs topped citizens ‘ worries. Jobs and career came in second and fourth, followed by the economy, respectively.

Analysts argued that it is inappropriate to separate geopolitics from bread and butter issues. Geopolitics may not in itself become a significant election issue, but its impact on practical issues like the cost of living, work, and economic security may have a bearing on citizens ‘ minds.

According to NUS Associate Professor Chong, Singapore’s “phenomenal” growth in the past was fueled by financial globalization and liberalization that rested on corporations supported by the US. A deterioration of these conditions may put pressure on Singapore’s “basic company model.”

Singapore was a mediator, a broker, or a comprador par excellence in the globalized foreign system. It gathered businesses and markets from all over the earth, he said. In Singapore, funding was increased, jobs were created, growth was aided, and inflation was maintained.

” Maybe, our voters are informed enough about this fact to make it a significant factor in how they vote,” said Dr. Tan of IPS Social Lab.

According to Dr. Woo Jun Jie, senior lecturer at the Lee Kuan Yew School of Public Policy, the PAP’s voting share in GE2020 makes it more difficult to predict whether there will be a trip to safety this time around.

Voters are more likely to concentrate on bread and butter problems, but they may unintentionally be affected by wider geopolitical improvements.

Even if it does not directly affect voters ‘ decisions, he said,” Political instability can cause a sense of unease among voters and color their views of domestic economic problems.”

According to analysts, Mr. Wong’s information on the taxes, which he delivered via his YouTube channel, is that voters should be aware of the difficulties Singapore faces and can be assured that the government will take action.

Dr. Woo said the speech assists Singaporeans in making crucial connections between world developments and their daily lives, as well as helping them to prepare for the effects the tariffs may have.

It is unjust to refer to the tariffs as “fearmongering” because of the major effects they will have on our business. Even if it were no an election season, the messages from both Mr. Wong and Mr. Singh would have been just as significant, he said.

Because it is election year, Mr. Wong’s leadership of the ruling party complicates how the word “united” is interpreted. It was anticipated that Mr. Singh, as the leader of the opposition, would share his opinions on this, according to Dr. Teo.

His primary goal is to convey the idea that having a different congress won’t lead to unrest, but rather to encourage cooperation among Singaporeans, she said.

According to Dr. Tan Ern Ser, the remarks made by PSP’s Mr. Leong and Dr. Tan Cheng Bock come off as trivializing the challenges that lie ahead.

However, the PSP officials “remark to something that cannot be excluded at this time: that the PAP may be attempting to use a real crisis to entice the common to vote,” said Assoc Prof Chong.

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Commentary: How financial influencers can make or break investment platforms like Chocolate Finance

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HIGHER RISKS, HIGHER Profits

Systems like Chocolate Finance have a number of appealing features, mainly due to their promise of higher returns. However, higher profits usually come with higher risks. Customers may question the viability of such results when fiscal products offer yields that considerably exceed those of traditional banks.

The chocolate finance’s business model relied on user deposits being invested in bond funds, which are still usually safer than equities but also have interest rate and credit risk. Tie prices may drop as interest rates fluctuate, affecting the product’s liquidity.

Financial stress occurs if a surge in payments causes the bankruptcy of bonds at unfavorable costs.

Influencers with unnamed economic interests may aggressively promote platforms, leaving their followers prone to unanticipated losses, in the worst cases. This threat is best illustrated by the rapid rise and subsequent decline of the$ Republican memecoin, which US President Donald Trump has touted. Its price dropped to around US$ 10 since reaching its peak in January, reaching US$ 70.

Invest smartly

Consumers may develop critical thinking skills in order to understand the hype given the growing role of influencers in economic decision-making. Here are a few important factors:

First, consumers must be aware of the distinctions between platforms offering voluntary fund management and regulated financial institutions.

The Monetary Authority of Singapore ( MAS ) has approved Chocolate Finance as a fund manager, but it is not a bank. Lenders are regulated by the Singapore Deposit Insurance Corporation, subject to stricter cash needs, borrower security plans, and are regulated by a banking license.

For portfolio control activities, economic platforms are permitted to use a capital market services license. They operate with more mobility, but there are fewer protections for consumer funds.

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Donald Trump threatens new 50% tariffs on China

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As the world’s markets dropped for a second time, Donald Trump has threatened China with an extra 50 % tax on imported goods into the US if it doesn’t renounce a failsafe.

The US senator stated at the White House on Monday that he was not thinking about putting a fresh tariff pause in order to engage in conversations with other nations.

” We’re not examining that,” we said. There are going to be good offers, he said, and we have many, many countries signing deals with us.

If Beijing didn’t back down with its counter-tariff intentions by Tuesday, Trump threatened to impose 50 % duties on Chinese products. US businesses that import sure goods from China may be subject to a 104 % tax if it is implemented.

In a post on his social media platform, Truth Social, Trump said he would introduce the extra tariff unless China withdrew its own 34% counter-tariff on American goods, which it announced on Friday.

Trump announced last Wednesday that as part of his” Liberation Day,” which required a minimum 10 % levy on nearly all of America’s trading partners, he would impose a 34 % tax on Chinese imports.

US businesses would then be required to pay a total rate of 104 % on Chinese imports if he does that, which comes on top of the 20 % tariffs that were already in place in March and the 34 % that was announced last week.

Trump claimed that China had taken its countermeasure “despite my caution that any nation that reacts against the United States may soon be subject to new, significantly higher tariffs.”

Beijing responded with a retort, claiming that “pressuring or threatening China is not a correct way to engage.”

According to Liu Pengyu, a representative for the Chinese Embassy,” The U.S. dominant move in the name of equality puts America first before international laws and serves its selfish interests at the expense of other nations ‘ legitimate pursuits.”

This is a typical example of unilateralism, isolationism, and economical bullying.

The US senator said there could be negotiations and everlasting taxes while speaking from the White House.

He continued,” We have$ 36 trillion debt for a reason,” adding that the US would be talking to China and other nations to reach a” fair deal and a good deal.”

The US senator declared,” America presently comes first.”

Fears of a global industry war have grown as a result of the US and China’s increasing pressure. The tariffs would be a significant blow to China’s producers, for whom the US is a key export business.

Uncertainty around the tariffs led to a turbulent day on global stock markets.

Since Trump’s new levies on imports from almost all of the world’s markets, markets have fallen worldwide.

While Europe’s biggest markets, including London’s FTSE 100, all closed more than 4 % down, the value of US stock markets dropped sharply once more on entry.

Asian share stocks have fallen sharply, with the Hang Seng index in Hong Kong experiencing its biggest one-day decline since 1997, down by more than 13 %.

The effects have been extensive on the FTSE 100, S&amp, P 500, Germany’s Dax, and Japan’s Nikkei.

Trump’s post even stated that discussions regarding price levels may “begin taking place soon.”

Trump and Netanyahu, the prime minister of Israel, met at the White House on Monday. Netanyahu claimed that his nation would end the US-US deal imbalance, which he described as the “right thing to do.”

” We’re going to remove business restrictions as well as do it very immediately.”

According to Trump’s” Liberation Day” strategy, Israel will be subject to a 17 % tax starting April 9.

The US president also posted earlier that Japan was sending a negotiation team to discuss tariffs.

Trump was also offered a “zero-for-zero price” deal by European Commission president Ursula von der Leyen, despite her earlier claim that she had not ruled out retribution.

We are even prepared to take measures and protect our interests, she said.

Trump eventually claimed that the EU was created” to actually harm the United States and trade.”

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US tariff hike prompts new trade strategy

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PUBLISHED: 8 Apr 2025 at 03: 30

A senior official has emphasized that the government’s approach to conversations over US tariffs may be guided by a “know your army, know yourself” approach, which seeks to determine Thailand’s strengths and situation thoroughly before engaging in dialogue.

Supavud Saicheua, the director, stated that the Thai authorities is preparing to discuss lowering trade tariffs and boosting American purchase. This action is in response to the 36 % increase in trade tariffs set to go into effect tomorrow.

Importing US agricultural products, which will then be transformed into food items for trade to other nations, is a key plan. Thailand has a major advantage in this field thanks to its breadth of experience in food handling. He stated that in order to help this plan, the government intends to establish business alliances with US states with significant agricultural industries.

He also made it clear that the government will provide short-term money as an incentive to support businesses affected by the price increases. To assist these businesses in finding other markets for their exports, a expenditure of 3 billion ringgit will also be allocated.

Mr. Supavud emphasized that the US’s price increases are motivated by three main goals: reducing industry imbalances, generating more revenue to lower the US budget deficit, and encouraging US businesses to re-engage with American manufacturing. He did point out that entering agreements without delay, as some nations like Canada and Vietnam have done, may not be the best course of action. These nations are also subject to higher taxes despite having trade surplus with the US.

He claimed that the Thai authorities had developed actionable strategies. The main thrust of the plan is to change trade and economic ties to make use of both countries ‘ advantages, such as the Thai company that processes US agricultural products.

This approach includes addressing items that are incorrectly labelled as coming from Thailand in order to lessen the negative effects of US tax policies. Additionally, it aims to boost Thai investment in the US and boost agricultural imports, especially in those areas where Thailand is unable to produce domestically, quite as energy-related goods.

The Thai government’s agreements with the US will proceed through a systematic, step-by-step approach, Mr. Supavud continued, making sure that both nations ‘ last contracts are beneficial.

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