Thailand assesses situation as Trump takes office as US president

Deputy Prime Minister Phumtham Vechayachai spoke at Government House on Monday regarding the assessment of the situation before Donald Trump's inauguration as president of the United States. He said it is normal for Thailand to assess the policies of any incoming leader to determine if they align with Thailand's interests. Adjustments will be made where possible to benefit the country, and relevant agencies will review the details.

Phumtham added that no final decision has been made on whether any changes will occur, as Trump has just taken office. However, in general, the relationship between the United States and Thailand has always been strong.

Regarding diplomacy, if the United States offers any suggestions, Thailand will consider them according to its own criteria, with the Ministry of Foreign Affairs handling the process.

Meanwhile, Pornchai Thiraveja, director of the Fiscal Policy Office, said the FPO has been monitoring and evaluating the impacts of international policy after Trump's official inauguration to a second term as US president on Monday, January 20.

Trump 2.0 policies focus on "America First", aimed at strengthening the United States’ economic and political power. Key policies include:

• Trade: Imposition of import tariffs on goods from foreign countries, particularly China, with rates as high as 60%.
• Economy: Reducing corporate taxes to 15% for companies that produce within the US, encouraging reshoring investments.
• Energy: Promoting fossil fuels and expanding oil and coal extraction.
• Climate Change: Halting investments in green energy.
• Immigration: Implementing stricter immigration controls to prioritise American jobs.

However, there are still opportunities for Thailand's economy during this period, such as attracting investments from companies looking to relocate production to avoid higher tariffs. Thailand is well positioned to support the development of high-tech industries, such as electronics, semiconductors, and electric vehicles (EVs), as well as the growth of the renewable-energy sector to meet global market demands.

In addition, there is potential for increased agricultural exports, as trade barriers against Chinese goods may drive higher demand for Thai products, such as frozen foods.

At the same time, the FPO has proposed strategies for Thailand to adapt and prepare for the changes in US policy, which include:

• Expanding export markets by reducing dependence on the US and China, and increasing focus on Europe, the Middle East, and Asia.
• Promoting a low-carbon economy through investments in renewable energy and clean-technology industries.
• Developing the workforce by enhancing skills in advanced technology and automated manufacturing.

For 2025, Thailand's economy will continue to face challenges, including the slowdown in China, which impacts supply chains and regional demand for goods, as well as currency fluctuations, increasing import costs, and reduced competitiveness.