Thai Baht Set to Weaken as US Tariff Tensions Escalate

[ronnie50]

10 hours ago, dinsdale said:

I'm confused. Wasn't there an article not too long ago saying Baht strengthening because of tariffs?

Yes, this article looks like a story searching for a headline. Thailand doesn't export steel or aluminium  to the US. They sell rubber #1,  machinery and some other odds and sods that they manufacture here. And of course rice and shrimp. So the article's premise is questionable. Of course, if Stump follows through and taxes everything coming into the country at 25% then yes, a game changer.

[ronnie50]

Also, I believe Thailand imports steel from China..

[Harrisfan]

Great. Weaker baht is a win. Thanks Trump. 

[Sigmund]

In the year 2025, the proper rate of the Thai Bhat must be revised. Any foreigner who gives 1 Euro in Thailand must get no less the 40 THB. Currently the THB is overrated. Maybe just to allow all the hi-so's to quickly take their bhat out of Thailand and get more foreign exchange to be put in the foreign bank account some place in Asia or in Switzerland.

[hotchilli]

12 hours ago, dinsdale said:

I'm confused. Wasn't there an article not too long ago saying Baht strengthening because of tariffs?

It's like the wind, it changes direction

[fleccer]

We really hope it goes down 

[scottiejohn]

10 minutes ago, fleccer said:

We really hope it goes down 

Self interest I assume!

[Ben Zioner]

7 hours ago, connda said:

Good!

 

Yeah for certain things Donald may end up being a "useful idiot".  I am sure Mossad are modelling scenarios based on his idiotic whims, but the "Gaza holiday resort" option only as the office joke of the month.

[impulse]

7 hours ago, connda said:

Maybe it would be worth writing to the Trump White House informing his cabinet and DOGE of the Thai import tariffs on US goods and request that the US in turn implements reciprocal tariffs in a Quid Pro Quo manner until such time as Thailand drops its tariffs on US imports. 

 

Looking at the trade imbalance, I'm sure that's in the works.

 

[pacman32]

I never understand the thai baht, you have a country that is forever in political turmoil even going through a military coup but the currency is over 50% higher than before 🤔

[fleccer]

1 hour ago, scottiejohn said:

Self interest I assume!

I assume the problem doesn't exist for you.

[scottiejohn]

18 minutes ago, fleccer said:

I assume the problem doesn't exist for you.

What problem?

[Dexxter]

15 hours ago, dinsdale said:

I'm confused. Wasn't there an article not too long ago saying Baht strengthening because of tariffs?

 

I predict that the Thai Baht will either strengthen or weaken in the near future. There is also the possibility it will remain the same.

[TheAppletons]

6 minutes ago, Dexxter said:

 

I predict that the Thai Baht will either strengthen or weaken in the near future. There is also the possibility it will remain the same.

 

  Nobel prize, Dexx.  This is indisputably "spot on".  

[Dexxter]

Just now, TheAppletons said:

 

  Nobel prize, Dexx.  This is indisputably "spot on".  

I will donate my Nobel Prize money to support the Thai Baht whichever way it chooses to go.

[SanSaiExPat]

9 hours ago, Jonathan Swift said:

First of all most of the Trump white house are functionally illiterate, so writing to them? Seriously?  Secondly, the US doesn't care one whit what happens to Thailand, in Trump's eyes it's just another one of his <deleted>hόIe countries (his words, not mine). Thailand has nothing to offer Trump in return for favors. It's going to be quid pro quo for the next four years. Just forget about the US, as I have. 

President Trump never refered to Thailand as a "<deleted> hole country".   Trump has had very good communication and policies in the past with Thailand. 

[metisdead]

A post with nothing other than a trolling meme video has been removed.

[Isaan sailor]

As long as we’re in high season—with 10’s of thousands of tourists changing their currency to Baht each day—the Baht won’t change much.  I look forward to low season.

[Baht Simpson]

"If the baht continues its decline and breaks through the resistance threshold of 34-34.10 per dollar, it might challenge the 34.20 zone next," he suggested.

 

Lol. It might even crash to 34.30!!

[Gknrd]

The anti-American sentiment goes up proprtionally as the Baht drops in value.  What always got me when I was living there was the retiree's that live there trashing the US and being very vocal about it. All the while spending their SS money from the US. I never really understood it.They love getting the money and spending the money but then trash the US.  Especially since Thailand is one of the most corrupt countries in the world. Hopefully this will be addressed in the US in the next 4 years.  SS needs to be reformed so the younger generation can enjoy the benefits. 

[Patong2021]

11 hours ago, Jonathan Swift said:

Keep in mind that this is the same seesaw that has always existed. If the baht weakens then the strong foreign currency's buying power will bring more dollars and other currency into Thailand, people will be more motivated to come here and spend. I will certainly be more inclined to bring more money in from the US. The exchange rate has been unusually low in favor of the baht for some time, between 33 and 34 baht to the dollar. It has not long ago been as high as 38 baht to the dollar. I will admit to not knowing enough about the actual Thai economy to understand the real impact of this on Thailand as a whole. I suspect, just as in my case, it doesn't affect the general population in any real sense. Cheers everyone, enjoy your day. 

 

It will most certainly damage the Thai economy and some of the most economically vulnerable of Thais will suffer when they can't sell their products into the USA. The US agriculture and seafood lobby has been lobbying against Thai food products (seafood, rice) for years.  Tariffs will be  applied to Thai products.  The assumption/hope that Trump and his plan  sponsors have is that the foreign currencies exchange rate with the USD will crash and that the increased costs consumers will pay, will be offset by the depreciation of the exporter currencies. The Trump plan requires foreign currencies to depreciate, otherwise the tariffs will  hurt US consumers and will cause inflation to  increase. It is a gamble. The Trump plan does not take into account that the USA will be taking on multiple foreign economies at once. It might have had a chance to work if it was 1 or 2 weak economies at a time, but  the Trump tariffs will attack G7 member economies at the same time it hits Thailand and India. 

 

Thailand  to USA 2023 Exports In USD

Machinery, nuclear reactors, boilers $10.32B

Rubbers $4.62B

Vehicles other than railway, tramway $2.60B

Pearls, precious stones, metals, coins $1.70B

Articles of iron or stee l$1.43B

Plastics $1.10B

Optical, photo, technical, medical apparatus $925.23M

Meat, fish and seafood preparations $857.25M

Furniture, lighting signs, prefabricated buildings $773.42M

Vegetable, fruit, nut food preparations $674.24M

Cereals $661.31M

https://tradingeconomics.com/thailand/exports/united-states

 

[fleccer]

4 hours ago, scottiejohn said:

What problem?

The too expensive baht I don't think it's just my concern