Thailand Urged to Form ‘War Room’ in Response to US Tariffs

[pimmmm]

1 hour ago, WayneNS said:

Thailand charges on average 8% on US imports. America charges on average 2% on Thai imports. The 37% rate is to reflect the huge $45 billion dollar trade deficit. This means the only way for Thailand to reduce the deficit and thus the tariff is  to buy more American imports or otherwise make investments into the American economy. This is why it is a crisis. Thailand can't simply lower its tariff rate. Trump is saying I will not keep buying from you unless you buy a lot more from me.

Yes it's a trade deficit thing but still easily solved,  Cambodia for example has this big tariff imposed for it's trade deficit, so Cambodian consumers need to buy more US stuff simple.

If their families started buying model Ys for example it would  help and it's a great car, and big Cambodian tech companies could start buying Nvdia GPUs, anmd their govt could purchase a load of F35s, defence boosted and problem solved, easy. 

[hotchilli]

15 hours ago, Patong2021 said:

 

Which ones? Help me out here, what tariffs  does  Thailand impose that really impact imports from the USA?

Vehicles

[Xonax]

Apart from luxury items, Thailand's does not come anywhere near of an 72% import duty on US goods. Furthermore the new US import tariffs, is just Trumps way to make decision makers listen and start a negotiation.

[ronster]

Thais are worried McDonald's, KFC and Starbucks become expensive !! 😲

[MangoKorat]

15 hours ago, Patong2021 said:

 

Which ones? Help me out here, what tariffs  does  Thailand impose that really impact imports from the USA?

Just glancing through this and to be honest, I have no idea which US products are imported into Thailand and are therefore subject to high tariffs.  However, I suspect that as with other countries, its more about what countries DONT export to Thailand BECAUSE of the high tariiffs.

 

For example, a fair proportion of Japanese branded pick up trucks that are actually assembled in Thailand are exported to the UK.  There are very few UK/European assembled vehicles exported to Thailand and that is most likely due to the protectionist tariffs the country imposes on them. BMW used to produce some 3 series models in Chonburi - not sure if they still do but that's a rarity.

 

Not really sure what the answer is to be honest.  Thailand seems to have been very successful in getting Japanese manufacturers to build assembly plants in the country but do any of those exports end up in the US? I suspect most are sold in the domestic/ASEAN market. Would they reduce tariffs on vehicles and risk what they have?

 

If US auto makers are anything like others - a lot of parts might be made in Thailand and shipped to the US, along with parts made in other countries and then assembled in the US.

 

The auto industry is one matter that Trump doesn't seem to know much about - its a global business with parts made all over the world.  His tariff war must be creating a real headache for both the industry as a whole and US auto makers in particular.

[hotsun]

1 minute ago, MangoKorat said:

Just glancing through this and to be honest, I have no idea which US products are imported into Thailand and are therefore subject to high tariffs.  However, I suspect that as with other countries, its more about what countries DONT export to Thailand BECAUSE of the high tariiffs.

 

For example, a fair proportion of Japanese branded pick up trucks that are actually assembled in Thailand are exported to the UK.  There are very few UK/European assembled vehicles exported to Thailand and that is most likely due to the protectionist tariffs the country imposes on them. BMW used to produce some 3 series models in Chonburi - not sure if they still do but that's a rarity.

 

Not really sure what the answer is to be honest.  Thailand seems to have been very successful in getting Japanese manufacturers to build assembly plants in the country but do any of those exports end up in the US? I suspect most are sold in the domestic/ASEAN market. Would they reduce tariffs on vehicles and risk what they have?

 

If US auto makers are anything like others - a lot of parts might be made in Thailand and shipped to the US, along with parts made in other countries and then assembled in the US.

 

The auto industry is one matter that Trump doesn't seem to know much about - its a global business with parts made all over the world.  His tariff war must be creating a real headache for both the industry as a whole and US auto makers in particular.

Japan in particular is devastated. Their economy relies on americans buying their cars

[renaissanc]

That's an ignorant knee-jerk reaction that will only result in escalation. Scott Bessent, the Secretary of the Treasury, has indicated this. Thailand, be sensible. Simply reduce or remove the current high tariffs on US goods and the same will be done by the US. Then Khun Paetongtarn can go for a photo op in the Oval Office.

[crazykopite]

It’s payback time as far as Trump is concerned Thailand has no room to complain look at the import duties they charge for vehicles wines the list is never ending no wonder he has hit the kingdom with a 35% tariff  !

[MangoKorat]

3 minutes ago, hotsun said:

Japan in particular is devastated. Their economy relies on americans buying their cars

Well, another 3.75 years of this - what will be left of any economy by the time Trump is replaced - including the US?  It seems to me that his policies are going to cause worldwide stagnation if not outright recession and all he will have achieved is isolation of the US.

 

Exporters are already looking at alternative markets - by the end of this, the US may not be such an attractive place to export to or import from.

[Ironmike]

Thailand and there greedy politicians have been ripping the US off for so many years and now that Trump is doing something about it there all crying in there somtum maybe instead of war room and can call it a crybaby room. 

[JJ-Thailand]

Everybody left Thailand alone with its insane tariffs on imported cars, foods and other items for many years, but it is now over. Enjoy.

[portisaacozzy]

17 hours ago, snoop1130 said:

File photo for reference only

 

Thailand faces a major economic challenge as US President Donald Trump announced a 36% tariff on Thai imports. Dr. Santitarn Sathienthai, a member of Thailand’s Monetary Policy Committee, suggests the urgent creation of a “war room” to tackle the potential economic fallout.

 

Posting on Facebook, Dr. Santitarn, an adviser to the Thailand Development Research Institute, described the tariffs as an economic "earthquake" with severe global aftershocks. Many countries could erect tariff barriers, leading to deteriorating global trade.

 

The American market has become restrictive, making exports difficult. Consequently, countries, including Thailand, are keen to shift focus to other markets, intensifying competition. Goods from other regions might flood Thailand, complicating the economic landscape.

 

 

 

Although Vietnam faces a steeper 46% tariff, the Thai economy might see delayed investment from Chinese firms avoiding the US-China trade conflict. Negotiations could alter tariff levels, but the uncertainty is causing worldwide business hesitation, impacting investment immediately.

 

Dr. Santitarn warns that Trump's tariffs may impact Thailand's economy more than anticipated. He called for an urgent “war room” involving public and private sectors to strategize and mitigate risks. Businesses must adapt their strategies to identify opportunities amidst the crisis, as the economic impact might extend over the long term, reported Thai News Room.

 

-- 2025-04-03

 

 

be carefull what you wish for, USA is fully aware of the countries that are letting china export there goods through there countries !

[crazykopite]

15 hours ago, phetphet said:

Thai car buyer thinking: Should I buy Honda, Toyota or Mazda vs Chevrolet or  Ford?  Tesla or BYD ? Hmm

My Toyota cross GR hybrid is built in Japan dissembled in Japan placed in a container shipped to Bangkok then reassembled all this to avoid the ridiculous duty on imported cars  a brilliant SUV at a cost of 1.295 million Bht !

[hotsun]

9 minutes ago, MangoKorat said:

Well, another 3.75 years of this - what will be left of any economy by the time Trump is replaced - including the US?  It seems to me that his policies are going to cause worldwide stagnation if not outright recession and all he will have achieved is isolation of the US.

 

Exporters are already looking at alternative markets - by the end of this, the US may not be such an attractive place to export to or import from.

Isolation of the US is preferable to Trump than the previous administration who were giving away all their money to everyone for nothing

[Billybaroo]

16 hours ago, Patong2021 said:

 

Which ones? Help me out here, what tariffs  does  Thailand impose that really impact imports from the USA?

Exactly. Thailand imports very little from the US in the grand scheme. US imports quite a bit of  commodity. The scales very much favor the US in monetary value in the trade balance. 

[Colki]

Dr Sanitarn states... many countries could erect tariff barriers leading to deteriorating global trade... yes they do I imagine he knows very well one of those countries.

[lordgrinz]

God I love chaos, this is going to be the best 4 years ever 🤣

[cedel]

17 hours ago, robz said:

Again:

Drop the abnormal 300% import tax on cars.

 

and the same on wines, champagne and imported products (cheese, cold cuts etc) 

[cedel]

17 hours ago, redwood1 said:

So we will be buying imported wine real cheap soon right?

knowing the thais, they could reduce tariffs only on US wines but increase them or leave them as high as they already are on French, Italian, Spanish and Australiab wines.. 😂 

[NorthernRyland]

I don't even agree with tariffs but I'm loving this story so far. Oh my god they did that thing to us that we did to them! Man the battleships!

 

Maybe next time they can start charging Thai tourists 10x the price to enter national parks and see how they like that one and of course it goes without saying to ban all non-citizens from purchasing land or single residences. 

[iaminwa]

Australian red wine costs double in Thailand to what it costs in Australia - Thailand is getting everything they deserve!

[johnnybangkok]

Do any of you posters here actually live and work in Thailand? 3 pages of people mostly agreeing with all of this with very little regard to how this is going to affect business and therefore people in Thailand. All most of you care about is cheaper American wine and for some bazaar reason, buying Harley's that no one other than Americans buy anyway. 

 

The actual reason for all of this is Trump looking at trade deficits (not neccessarily who tariffs US products more) which currently stands at $45B (pocket change for the USA) but since Thailand's main US imports come from mineral fuels, oils, distillation products, machinery, nuclear reactors, boilers, and electrical and electronic equipment the room for increasing buying of these things is limited (it's not just about buying a few more Harley's or a couple more bottles of Jack Daniels). Thailand can however start buying more natural gas from the US as it currently buys this from the Middle- East, more agricultural products and yes, of course it can reduce tarriffs but the reducing of tariffs still doesn't affect the trade inbalance sufficiently enough as people still have to buy the product and there's still a VERY limited market for US products in Thailand and moving production to the US is just not going to happen. Plus there is also no guarantee that even if Thailand does drop tariffs, the US will reciprocate (see someones post about Vietnam earlier). 

 

These are worrying times for Thailand which is already trying to cope with high household debt leading to a major decrease in local buying power so before you start slagging off the country you actually live in (if you even do of course) have a thought for how a very low predicted 2025 GDP growth of some 2.3% is now going to take a 1% hit just from these measures alone. How many factories will be forced into closure and the subsequent knock on effect of businesses that supply to these factories. Closures and wide-ranging redundancies are highly likely. But yeah, as long as long as you get a cheaper glass of wine.

 

My own business is intricately linked to Thai business and I am VERY concerned that this will be the final 'straw' for many Thai companies. Worrying times ahead indeed.

 

[hotsun]

4 minutes ago, johnnybangkok said:

Do any of you posters here actually live and work in Thailand? 3 pages of people mostly agreeing with all of this with very little regard to how this is going to affect business and therefore people in Thailand. All most of you care about is cheaper American wine and for some bazaar reason, buying Harley's that no one other than Americans buy anyway. 

 

The actual reason for all of this is Trump looking at trade deficits (not neccessarily who tariffs US products more) which currently stands at $45B (pocket change for the USA) but since Thailand's main US imports come from mineral fuels, oils, distillation products, machinery, nuclear reactors, boilers, and electrical and electronic equipment the room for increasing buying of these things is limited (it's not just about buying a few more Harley's or a couple more bottles of Jack Daniels). Thailand can however start buying more natural gas from the US as it currently buys this from the Middle- East, more agricultural products and yes, of course it can reduce tarriffs but the reducing of tariffs still doesn't affect the trade inbalance sufficiently enough as people still have to buy the product and there's still a VERY limited market for US products in Thailand and moving production to the US is just not going to happen. Plus there is also no guarantee that even if Thailand does drop tariffs, the US will reciprocate (see someones post about Vietnam earlier). 

 

These are worrying times for Thailand which is already trying to cope with high household debt leading to a major decrease in local buying power so before you start slagging off the country you actually live in (if you even do of course) have a thought for how a very low predicted 2025 GDP growth of some 2.3% is now going to take a 1% hit just from these measures alone. How many factories will be forced into closure and the subsequent knock on effect of businesses that supply to these factories. Closures and wide-ranging redundancies are highly likely. But yeah, as long as long as you get a cheaper glass of wine.

 

My own business is intricately linked to Thai business and I am VERY concerned that this will be the final 'straw' for many Thai companies. Worrying times ahead indeed.

 

Thailand has no choice but to drop their tariffs and hope that the US does the same. Karma is a bitch

[johnnybangkok]

10 minutes ago, hotsun said:

Thailand has no choice but to drop their tariffs and hope that the US does the same. Karma is a bitch

The typical ill-informed rantings of a MAGA fanatic. 

As I've already pointed out, it's not about tarriffs - it's about trade deficits and even if Thailand dropped all tarriffs on US products tomorrow, that doesn't mean the trade deficit is going to improve. Thai's are not going to simply buy more US products and certainly not to the tune of $45B. You need to have a market that wants the product in the first place (big problem) and the product (even without tarriffs) still has to be competatively priced against other similar manufacturers who are closer (China for example) and have lower logistic costs. A big dent could be made in natural gas, but even if Thailand stopped buying all of it's natural gas from other markets and bought it all from America (highly unlikely), this would still only be $11B. That's still $34B to go which just cannot be made up with buying more US products.

So take off you MAGA blinkers for a second, read an article now and again and stop with all this sycophantic nonsense when it comes to this man. Here, I'll start you off;

https://www.kcl.ac.uk/trumps-tariffs-what-is-behind-them-and-will-they-work    

[twizzian]

Thailand has created a new Acronym or even a common word “Earthquake” 

[Nid_Noi]

9 hours ago, Patong2021 said:

 

You do not understand what a Value Added Tax is do you?

Countries with a VAT methodology are more likely to have a fair consumptipn tax system.

The USA doesn't have a VAT tax, but most of the world does and it results in societal benefits. In effect the USA is  angry that the world moved to a more equitable tax system.

 

The victim of the VAT tax is the final consumer, rich or poor. From producers to retailers VAT is paid on the mark-up portion of the price. The more “middle men” in the marketing process, the more taxes will be paid by the final consumer.

There is no social benefits in the VAT. VAT is on Goods and Services. VAT is a tax on taxes. In conclusion the VAT is the major cause of fiscal fraud (cash payment, undeclared work, barter, double-invoicing, etc…).

VAT has been the cause of unemployment and social security deficit.

[sqwakvfr]

Anyone know what the Thai tariff rates are on imported wine, cheese and olive oil?  These three items are important to me so I feel the pinch eveytime I purchase any of these items. 

[spidermike007]

The conservatives and the Trump sympathizers on this page will go on and on about how Thailand needs to level the playing field, and Thailand needs to reduce their tariffs. I agree that would be smart on their part. 

 

Intelligent people who understand the economy know is that low tariffs lead to a very dynamic economy and one of the reasons why the US has been the strongest economy in the world for quite some time is that they've had very low import tariffs, which have resulted in a massive economy. Trump doesn't understand any of that, he doesn't understand anything about globalization nor the ecosystems involved with globalization, he doesn't get the fact that a Ford Ranger has major parts that are manufactured in 24 different countries, and all of that's just way over his head. 

 

He is a simplistic man, and will have to back off, or republicans will withdraw their support, once inflation spikes at unprecedented levels. Get ready for an economic tsunami and a major recession, caused by the goombah.

 

https://youtu.be/jLpUEACVBlE?si=xH-M84ICmSMOeFXk

[HaoleBoy]

Thailand imposes their Import Tax based on the price of the item + Insurance of item + shipping cost.

Is this normal for other countries Import Tax?

 

Doesn't Thailand include VAT on top of the Import Tax as well?

 

Thailands " import de minimis"  is still 1500 thb I believe or did this recently change?

[Patong2021]

3 minutes ago, Nid_Noi said:

The victim of the VAT tax is the final consumer, rich or poor. From producers to retailers VAT is paid on the mark-up portion of the price. The more “middle men” in the marketing process, the more taxes will be paid by the final consumer.

There is no social benefits in the VAT. VAT is on Goods and Services. VAT is a tax on taxes. In conclusion the VAT is the major cause of fiscal fraud (cash payment, undeclared work, barter, double-invoicing, etc…).

VAT has been the cause of unemployment and social security deficit.

 

The tax is added as value is contributed in the chain.  There are offsets along the chain that participants apply. This ensures that the VAT is only paid on the value of the final product. Participants in the chain are deducting their VAT input costs.  That addresses your unsubstantiated claim of middle men inflating prices.

Most countries exclude critial products such as food and some medical supplies. Many countries also give a VAT tax rebate on a quarterly basis to lower income people. In some countries, the VAT replaced multiple hidden taxes, such as a national sales tax. 

VAT is one of the most equitable forms of taxation because it is a fair method  of sharing the cost of government services rather than just sticking income tax payers  with the ever increasing costs.  The greatest benefit of VAT is that it reduced tax evasion on transactions.

Your opinion is thankfully is helf by a very small minority in the advanced nations that have a VAT.