Thai Trade Office Directors highlight opportunities from Trump's tariff

The New Economy Academy (NEA) organised a seminar titled "Decoding Trump's Tax Policy: Opportunities for New Era Trade" on April 25, 2025.

Pichai Naripthaphan, the Minister of Commerce, opened the seminar, which included a discussion on the US market situation following Trump's policy announcement. The seminar featured directors of International Trade Promotion offices in five major US cities.

Supawadee Yaemkamol, Director of the Trade Promotion Office in Washington, D.C., stated that Trump’s trade policy and measures (Trump 2.0) prioritise the interests of the US, focusing on promoting investment, employment, and domestic growth. The policy aims to enhance the US's competitive edge in key industries and strategic technologies, reduce trade deficits, and ensure fair trade relations.

The policy also seeks to strengthen economic and national security, as well as US-China relations. This led to Trump's decision to impose country-specific tariffs on April 2, 2025, with the taxes divided into three groups: 1) Taxes on all countries except Canada and Mexico, 2) China, and 3) Canada and Mexico.

Additionally, tariffs were imposed on specific products such as steel and aluminium, automobiles and automotive parts, semiconductors, and imported goods under Section 232, alongside other existing import tax measures. Non-tariff barriers (NTBs) are also being used as countermeasures.

The tax increase presents both opportunities and challenges, with the chance to address the enforcement of tax measures delayed by 90 days. Thailand is leveraging bilateral cooperation with the US, such as the Thailand-US Trade and Investment Framework Agreement (TIFA).

"Entrepreneurs should not give up in the crisis, as there are still opportunities. The US is Thailand's top market with high purchasing power, and I believe the tax measures are only short-term."

Ketsuree Vijaranakorn, Director of the Trade Promotion Office in New York, stated that after Trump imposed tariffs, American consumers began stockpiling goods due to concerns that prices would rise. This change in consumer behaviour, driven by economic worries, led to a slowdown in spending on non-essential products and a shift toward more affordable items. Consumers also started purchasing more domestically produced goods.

There are still factors supporting American purchasing power, such as stable unemployment rates compared to last year, and a 3.8% increase in wages over the past year. Additionally, President Trump has announced a policy to reduce income taxes, which is currently under consideration by Congress.

For Thai entrepreneurs, it is advisable to plan for cost reductions and product development, explore new markets, build new partnerships and networks in the US, and closely monitor tax policy updates while coordinating with the government to help promote and publicise products in the US market.

Nivat Hansawat, Director of the Trade Promotion Office in Los Angeles, mentioned that American consumers experienced a shock and rushed to buy goods, particularly food items like rice, coconut milk, canned food, while restaurants also stockpiled goods out of concern that the tariffs would drive up prices. Some store shelves were emptied, leading to shortages of certain items, especially condiments like soy sauce. However, after Trump announced a 90-day delay, the situation returned to normal.

Despite the crisis, opportunities remain. The shift from importing Chinese goods to Thai products due to higher tariffs on Chinese goods presents an opportunity for Thailand to replace those products, such as canned vegetables and fruits, which have a 100% tariff on Chinese imports. This is a chance for Thai products to fill the gap, including packaging materials, construction materials, tiles, wooden flooring, and corn flour. This has resulted in continuous exports to the US in the first half of the year.

Supratana  Kamolvej, Director of the Trade Promotion Office in Chicago, stated that after the tariff increase, six US automotive industry groups, representing car manufacturers, distributors, and suppliers, submitted a request to Trump's administration to ease the 25% tariff on ten imported automotive parts. As a result, Trump is considering exempting some items from the tariff.

In the recent election, Trump won the state of Michigan, which shifted from being a Democratic stronghold to a Republican one. This could be a factor influencing Trump and his administration to consider relaxing the tariff measures on automotive products, which would benefit Thailand, a major exporter of automotive products to the US.

Chavanol Phivnil, Director of the Trade Promotion Office in Miami, mentioned that after the US imposed tariffs on China, Thai products have had opportunities to expand, such as small electrical appliances. US companies have reached out to source replacement products both in the US and Latin markets, as Thailand is a leading manufacturer in Asia, known for its quality products.

Additionally, there are opportunities for other products such as furniture, processed fruits, canned and dried foods, pet food, pet equipment, rubber gloves, medical equipment, hoses, fashion items, shoes, travel accessories, handbags, leather goods, jasmine rice, and seasonings.

Moreover, sectors like automotive parts, batteries, and car wheels continue to see imports into the US due to the lack of strong domestic production in these industries. Another area of interest is the gaming industry, along with fashion dolls, sports equipment, home décor, and household goods.