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Trump's tariff sword hangs over Thai economy

Trump's tariff sword hangs over Thai economy

10 Sept 16:21 Key points summarised by AI
  • Thailand's export-dependent economy faces a significant slowdown, with growth forecasts at just 1.7% next year, compounded by the looming threat of US tariffs.
  • The US suspended trade negotiations after Thailand halted a peace agreement with Cambodia following border skirmishes, jeopardizing the 19% tariff reduction previously brokered by Trump.
  • Prime Minister Anutin's controversial statements downplaying US trade ties sparked diplomatic fallout, as economists warn Thailand cannot easily replace the US, its largest export market, with alternatives like China.
  • Despite potential leverage from rare earth elements and its strategic role in countering China, Thailand is urged to exercise caution with the unpredictable Trump administration to avoid higher tariffs.
  • The NESDC recommends urgent measures for Thailand, including reducing production costs, accelerating trade agreements, and ensuring compliance with US regulations to mitigate the severe economic impact of potential increased tariffs.
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