Bangkok: The Palang Pracharath Party (PPRP) has raised concerns about the potential economic repercussions of a newly imposed 36% tariff on Thai products by the United States, effective from August 1. The party warns that this move could significantly impact Thai workers and the broader economy, urging the government to expedite transparency and compensation measures for affected export industries.
According to Thai News Agency, Mr. Thirachai Phuvanatnaranubala, deputy leader of the PPRP for economic affairs and former Minister of Finance, voiced his apprehension regarding the government’s negotiation tactics in response to President Trump’s tariff announcement. Mr. Thirachai emphasized the urgency for a timely and effective negotiation strategy to mitigate the adverse effects on Thailand’s economy, particularly given the substantial export market the United States represents for the nation.
In 2024, exports to the US constituted the largest market for Thailand, with an export value of approximately 1.93 million baht or 10.38% of the country’s GDP. Mr. Thirachai highlighted the potential for significant job losses if Thai exports decrease, which would subsequently impact workers in related supply chains. He stressed the difficulty Thailand would face in finding alternative markets due to the high-value nature of goods produced for the US market.
Mr. Thirachai criticized the negotiation team’s approach, pointing out their lack of transparency in disclosing proposals and demands from both Thailand and the US, which limits domestic academic critique and suggestions. He also questioned the effectiveness of proposals to reduce Thailand’s trade deficit with the US and criticized the focus on purchasing passenger planes and natural gas.
He suggested that negotiators consider the example set by Vietnam, which has implemented zero tariffs on US goods, as praised by President Trump on Truth Social. Mr. Thirachai recommended that Thailand explore collecting low-rate export taxes from large exporters to generate funds to support those impacted by the tariff, including farmers and small traders.
Mr. Thirachai also emphasized that trade benefits should not be exchanged for security demands, which could affect Thailand’s neutral stance between the US and China. He urged the inclusion of civil servants in negotiation teams to avoid disruptions to private investment plans and called for transparent negotiations to ensure public trust and protect national interests. The government must clearly communicate its relief plan and objectives to the public.