Thailand’s Central Bank Warns of Extended Uncertainty Regarding US Tariff Policy

The Bank of Thailand has issued a caution regarding the extended uncertainty stemming from US tariff policy, with effects expected to become more apparent later this year.

The Bank of Thailand has cautioned that the impact of the United States’ tariff policy on the nation’s economy will be enduring and fraught with significant uncertainty. 

During a press briefing on Friday, Governor Sethaput Suthiwartnarueput indicated that the complete effects of the tariffs would probably be more evident in the latter half of the year.

Thailand, a Southeast Asian nation significantly impacted by US trade policies during former President Donald Trump’s administration, is confronting the possibility of a 36% tariff unless a reduction can be negotiated prior to the end of a global moratorium in July. 

In the previous year, the United States emerged as Thailand’s foremost export market, representing 18.3% of total shipments, with a value of $54.96 billion. The trade deficit between the U.S. and Thailand reached $45.6 billion.

Suthiwartnarueput observed that the manufacturing sector would face the greatest challenges from the tariffs, but highlighted that the effects would not be as drastic as those experienced during the pandemic. 

He voiced apprehensions regarding a potential surge of imports into Thailand as trade diversions become more prevalent.