Commerce Minister outlines what Trump presidency means for Thai trade
Pichai highlights risks and opportunities in upcoming US trade talks set for February
Commerce Minister Pichai Naripthaphan has called on Thailand to address both the upsides and downsides posed by US trade policy when Donald Trump becomes president next month.
Pichai said on Monday that the Trump 2.0 policy, which is expected to increase import tariffs on Chinese goods, could create opportunities for Thailand to replace Chinese products in the US market.
However, he cautioned that US tariff increases on Thai imports could also undermine Thailand's competitiveness by increasing the cost of Thai goods for American consumers.
Various Thai sectors could be affected, including agricultural and food products, electronics, automotive parts, and electrical appliances, he said in an interview with Nation Group’s Thansettakij.
Pichai said trade negotiations were crucial if Thailand is to fill the gap left by a continuing decline of Chines exports to the US.
Thailand and China occupy similar positions in the supply chain and export ecosystem serving the US, with Thailand able to offer an alternative source of electrical appliances, electronic circuits, automotive parts, and other goods.
However, Trump’s vow to impose import tariffs of 60% on Chinese goods could compel China to reroute its exports, potentially making Thailand a target for US scrutiny to ensure it is not used as a transit point to circumvent tariffs.
Pichai said he would visit the US for trade talks with the new administration, and perhaps Trump himself, in February.
Pichai also addressed Thailand's trade surplus with the US – a potential sticking point in negotiations with a protectionist Trump administration.
He emphasised that the deficit stems not from profitable exports but from goods produced for US companies operating in Thailand.
"Therefore, the US should reconsider any plans it has to raise import tariffs on Thai goods to address the trade deficit, as this could deter US investment," Pichai said.
The commerce minister said he would also ask Trump’s administration to remove Thailand from the intellectual property watchlist and to expedite the renewal of Generalised System of Preferences (GSP) rights, which expired in late 2020.
