Pichai says Thailand neither gains nor loses from US court ruling on Trump’s tariffs
Pichai says Thailand will not gain or lose from US Supreme Court ruling on Trump’s tariffs, as regional rates keep competitiveness stable.
Caretaker Deputy Prime Minister and Finance Minister Pichai Chunhavajira said on Monday that Thailand would neither gain nor lose from the US Supreme Court’s final ruling on the reciprocal tariffs introduced by former president Donald Trump.
He explained that regardless of whether the Supreme Court upholds the ruling of the US Court of Appeals for the Federal Circuit, the overall trade situation for Thailand would remain largely unchanged.
The Court of Appeals ruled on Friday, August 29, that most of Trump’s “reciprocal tariffs” were illegal, affirming a lower court’s finding that the former president exceeded his authority by using the International Emergency Economic Powers Act (IEEPA) to impose the tariffs.
The court has stayed its ruling until October 14 2025, to give the administration time to appeal to the Supreme Court. This means the tariffs remain in effect for now and importers must continue to pay them.
Impact on Thailand’s tariff competitiveness
Pichai explained that if the US Supreme Court rules the reciprocal tariffs are legal, Thailand would pay a new reciprocal tariff rate of 19%, the same as other regional economies such as Vietnam, the Philippines, Malaysia, Indonesia and Cambodia.
“As every country in the region would pay the same rate, Thailand’s competitiveness would not be affected,” he said.
On the other hand, if the Supreme Court upholds the ruling that the tariffs are illegal, Thailand would return to the earlier tariff rates granted to all countries. “If the Trump administration wins the court case, we’ll use the new rate we negotiated for. If not, the tariffs will revert to the old rates for all countries,” Pichai added.
Caretaker government assures fiscal stability
Pichai also addressed concerns over Thailand’s political situation. He stressed that although the current Cabinet is in a caretaker role following the Constitutional Court’s ruling to remove Prime Minister Paetongtarn Shinawatra on Friday for breaching ethical standards, the fiscal 2026 budget bill and investor confidence remain unaffected.
He said the budget bill has already cleared the House and is now before the Senate, which could finish deliberations within two days. This would allow spending under the new budget act to proceed without delay.
“The next government can begin working with the new budget immediately, so there will be no vacuum in economic management,” Pichai assured.
