Trump's Re-election Sparks Fresh Challenges for Thai Economy

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Donald Trump. File photo courtesy: Wikipedia

 

The re-election of Donald Trump in the 2024 U.S. presidential race is set to alter the global economic landscape, posing new challenges and opportunities for Thai businesses.

 

The Thai National Shippers' Council (TNSC) has highlighted the need for companies, particularly exporters, to swiftly adapt to this changing environment.

 

Under Trump's "America First" policy, the TNSC anticipates a deepening divide between the U.S. and China, the world's two biggest trade blocs.

 

Chaicharn Charoensuk, the TNSC chief, emphasised the importance of Thai businesses remaining agile to navigate potential direct and indirect impacts stemming from these geopolitical shifts.

 

The looming threat of another U.S.-China trade war is of particular concern. Chaicharn suggests that Thailand could benefit if it positions itself as an attractive location for manufacturers seeking to relocate from China.

 

This would involve fostering a pro-investment atmosphere and enhancing Thailand’s role as a regional logistics hub.

 

"Thailand must aim to be a key part of the supply chain moving towards this region, not only within the country but also spanning across ASEAN and India," Chaicharn advised.

 

He also encouraged Thai entrepreneurs to explore new markets to mitigate the effects of potential shifts in U.S. foreign trade policy.

 

For instance, if the Trump administration pivots away from supporting electric vehicles in favour of internal combustion engines, there may be increased opportunities for Thailand to expand its automotive parts exports to the Americas.

 

Chaicharn further stressed the need for careful consideration in future trade negotiations, given the heightened sensitivity due to global power bloc divisions, reported Thae Nation.

 

"Thailand must stay neutral while protecting its market from cheap imports, particularly from China, by employing strict screening and supporting local manufacturers to innovate and reduce costs," he concluded.

 

-- 2024-11-08