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

[AustinRacing]

So what happens to massage ladies being imported to USA?  How can you tariff them? 

[trainman34014]

''War Room'' !    You have to laugh but don't tell all those 3,000 Generals there might be any kind of War as they will all be running the other way pretty quick to all the Properties they own in The West.

[vinny41]

7 minutes ago, spidermike007 said:

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

While it's accurate that the Ford Ranger has parts manufactured in multiple countries, the statement that it has parts manufactured in 24 different countries is not entirely accurate. The Ford Ranger is manufactured in five major production hubs around the world, which are Thailand, South Africa, the United States, Argentina, and potentially including completely knocked down (CKD) operations in Vietnam and Cambodia, according to Ford Media Center. While many parts may be sourced globally, the final assembly and production of the Ranger occur in these specific locations. 

https://media.ford.com/content/fordmedia/img/im/en/news/2023/10/25/10-fun-facts-about-how-ford-ranger-is-built.html

Thailand is a major global exporter of one-ton pickup trucks, but it does not export these trucks to the United States. The main reason for this is that the U.S. market prefers larger trucks and a 25% import duty is imposed on smaller trucks like one-ton pickups. 

The "Chicken Tax" is a 25% tariff on light trucks imported to the U.S., imposed in 1964 by President Lyndon B. Johnson. It was a retaliatory measure against European tariffs on American chicken exports.

[NorthernRyland]

26 minutes ago, johnnybangkok said:

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.

 

Where is this narrative coming from? It's a step in the direction of rebalancing trade.  Trade is obviously never going to be 1:1 with Thailand but in no world is it fair to have tariffs coming from Thailand and having the US just take it. Why can't Thailand just be fair with their trading? That isn't too much to ask.

[NorthernRyland]

8 minutes ago, AustinRacing said:

So what happens to massage ladies being imported to USA?  How can you tariff them? 

Special exemptions for massage ladies and sex workers.

[John Drake]

1 hour 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.

 

 

They should have bought the F16s

[vinny41]

1 hour 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.

 

For years, Thailand has imposed high tariffs on imported cars to protect its local car industry. These import taxes can be as high as 80%, which adds a huge amount to the price of foreign vehicles.

For example, a car priced at 720,000 baht ($20,000) in another country can balloon to 1.3 million baht or more due to these tariffs.

On top of that, excise taxes based on engine size and emissions are applied, along with a 7% VAT (Value Added Tax) on the car’s total cost, including import duties and excise taxes. Additional charges like registration fees, road tax, and customs processing fees further inflate the final price.

High car prices in Thailand are primarily due to import taxes and local taxes. Import duties can range from 187% to 328% depending on engine size, significantly inflating the cost of foreign vehicles.

https://thethaiger.com/guides/automotive/why-are-cars-so-expensive-in-thailand

Import tariffs are only the starting point when you add all the other taxes the final total is much higher

 

In 2018 there was a proposal to cut the import tariff on finished car from 80% to 40%.

The statement came on the heels of a recent proposal made by the Independent Car Importer and Distributor Association, asking the Ministry of Finance to cut the import tariff on finished car from 80% to 40%. Somsak Sriratanaprapas, the association's chairman, was quoted in Thai media as saying the tariff should be as in other countries in the region to secure a level playing field both for local auto manufacturers as well as importers.

"We want to see a realistic tariff rate that allows all parties to compete freely in a fair game," Somsak was quoted as saying. He argued that local auto makers have been well-protected by the unrealistic high duty for more than 30 years and it should be the right time to reduce the tariff. Somsak added that the ministry is considering the association's proposal.

https://thaiauto.or.th/2020/news/news-detail.asp?news_id=4072

If Thailand was to reduce their import tariffs to the same level of USA import tariffs it would show that they are open for fair trading between the USA and Thailand at the moment they are only interested in trading in one direction from Thailand to USA and have placed trading barriers  to prevent any automotive importer than wants to import automotive vehicles from USA to Thailand

[Jonnapat]

America, lead by a vindictive narcissist has completely lost its marbles.

I only hope that countries continue to boycott all American products now and in the future.

[Dan O]

19 hours ago, Don Giovanni said:

Good!

 

The Thais need to stop being so deluded and realize exactly where they stand on the world stage.

Even the smartest Thais I know when compared to western educated men/women absolutely pale in comparison.

 

The Don.

Yeah we know Bob you hate everyone and everything thai

[Patong2021]

2 hours ago, hotchilli said:

Vehicles

OK. What vehicles  does the USA manufacture for right hand drive?

Has the USA  ever manufactured such personal use vehicles for export?

Is it even economically viable to retool a production line to manufacture a small number of right hand drive vehicles? 

Changing import duties isn't going to magically result in a sales boom of US manufactured vehicles. The quality preceptions and dealer network issues effectively squash this in Thailand.

 

[Al BB]

3 hours ago, PomPolo said:

With you on this one I like a glass of red myself and some of my favourites are from EU countries how 1-2k baht can be justified on a bottle that would cost me 6-7 pounds in the UK haven't got a clue.

 

Californian (Napa Valley) Cab Sauv gonna cost an arm and 2 legs now!

[fondue zoo]

4 hours ago, hotchilli said:

You don't need a bloody war room... just drop your protectionist tariffs on all things imported.

 

True, they don’t have that much 'muscle' to flex. It's important they recognise their position in the grand scheme of things, especially as the world outside the Kingdom evolves.

But remember the "Thaksinator" is on the job, making deals, doing the business overseas as we speak, sparing no hair dye in getting things done.

 

[pub2022]

The party is over.

Reciprocal tariffs is the right thing to do.

[BLMFem]

17 hours ago, proton said:

 

Thats how I found out that BLM was a scam years ago 😆

OK, so it's advanced age that has made you forget it can be used for other stuff as well?

[vinny41]

15 minutes ago, Patong2021 said:

OK. What vehicles  does the USA manufacture for right hand drive?

Has the USA  ever manufactured such personal use vehicles for export?

Is it even economically viable to retool a production line to manufacture a small number of right hand drive vehicles? 

Changing import duties isn't going to magically result in a sales boom of US manufactured vehicles. The quality preceptions and dealer network issues effectively squash this in Thailand.

 

What you appear to be saying is that the  high tariffs on imported cars to Thailand to  protect its local car industry are pointless and unnecessary as even with no tariffs no US automotive manufacturer would ever consider exporting their vehicles to Thailand

as for production lines manufacturing both right and left hand drive cars while Jaguar and Aston Martin for years under Ford ownership had no issues manufacturing both right and left hand drive cars as all their plants were UK based

[johnnybangkok]

15 minutes ago, vinny41 said:

For years, Thailand has imposed high tariffs on imported cars to protect its local car industry. These import taxes can be as high as 80%, which adds a huge amount to the price of foreign vehicles.

For example, a car priced at 720,000 baht ($20,000) in another country can balloon to 1.3 million baht or more due to these tariffs.

On top of that, excise taxes based on engine size and emissions are applied, along with a 7% VAT (Value Added Tax) on the car’s total cost, including import duties and excise taxes. Additional charges like registration fees, road tax, and customs processing fees further inflate the final price.

High car prices in Thailand are primarily due to import taxes and local taxes. Import duties can range from 187% to 328% depending on engine size, significantly inflating the cost of foreign vehicles.

https://thethaiger.com/guides/automotive/why-are-cars-so-expensive-in-thailand

Import tariffs are only the starting point when you add all the other taxes the final total is much higher

 

In 2018 there was a proposal to cut the import tariff on finished car from 80% to 40%.

The statement came on the heels of a recent proposal made by the Independent Car Importer and Distributor Association, asking the Ministry of Finance to cut the import tariff on finished car from 80% to 40%. Somsak Sriratanaprapas, the association's chairman, was quoted in Thai media as saying the tariff should be as in other countries in the region to secure a level playing field both for local auto manufacturers as well as importers.

"We want to see a realistic tariff rate that allows all parties to compete freely in a fair game," Somsak was quoted as saying. He argued that local auto makers have been well-protected by the unrealistic high duty for more than 30 years and it should be the right time to reduce the tariff. Somsak added that the ministry is considering the association's proposal.

https://thaiauto.or.th/2020/news/news-detail.asp?news_id=4072

If Thailand was to reduce their import tariffs to the same level of USA import tariffs it would show that they are open for fair trading between the USA and Thailand at the moment they are only interested in trading in one direction from Thailand to USA and have placed trading barriers  to prevent any automotive importer than wants to import automotive vehicles from USA to Thailand

You seem to be focusing on one small area but we can take cars as an example of what this is all about.

 

I am not disagreeing that Thailands taxes on imported cars is prohibitively high but it worked for Thailand, with many major car manufacturers having large car plants in Thailand for both the local market and for export.  If you have a look around the roads at any time do you think there's a lack of those Ford Rangers on the road? There isn't as they are manufactured here because they need to be (as Patong pointed out) right-hand drive, which of course most American cars aren't and would require a big change in production to become right-hand drives. So even if this tax was dropped tomorrow, do you think there will be a mad rush to buy other American cars? And even if there was, do you think it will make up for the $45B trade deficit? Car manufacturers are not dumb. If they thought they would have a large market in Thailand then they would have already built a plant here hence why Toyota, Honda, Mitsubushi, Isuzu, Mazda, Ford, BMW, Mercedes, Tata and Diahatsu all have manufacturing plants in Thailand. Those that aren't here do not see the demand.

Trump is focusing these tariffs on trade deficits NOT who tariffs who and on which items. Even if Thailand dropped ALL tariffs on all American products tomorrow, there still wouldn't be enough demand to close the trade deficit and therefore it's unlikely to have him change his mind.

 

So for all those going on about the tariffs - it's not JUST about tarriffs, it's about trade deficits which are 100 times harder to close. Trump thinks he will force manufacturers to start manufacturing in the USA but that simply isn't going to happen so all that is going to happen is higher prices for American consumers and more misery for countries that he's set tariffs on.     

[Captor]

19 hours ago, impulse said:

 

Here's a thought.  Reduce the 72% tariffs being levied on American imports into Thailand.  You're still only getting half the rate.  I wouldn't be surprised (or disappointed) to see the 36% rate increase even more if there's no reciprocal movement.

 

 

 

 

Not only import from US. Import from ALL countries!

[johnnybangkok]

5 minutes ago, vinny41 said:

as for production lines manufacturing both right and left hand drive cars while Jaguar and Aston Martin for years under Ford ownership had no issues manufacturing both right and left hand drive cars as all their plants were UK based

Exactly. They are based in the country they are predominately selling to but have retooling capabilities for export to the US and to Europe. This was set up in advance knowinging they were going to be exporting.

If a US manaufacturer wants to sell to Thailand, they will have to retool their plant (if they haven't done so already) but more importantly, they would then have to compete with manufacturuers that already have a Thai base and therefore dramatically less logistic costs. Why buy a Cherokee (even wityhout tariffs) when a locally produced Ford Ranger is 25% cheaper?   

[Ralf001]

19 hours ago, robz said:

Again:

Drop the abnormal 300% import tax on cars.

 

Import tax is 80%.

The rest are internal taxes.

[nakhonandy]

14 minutes ago, johnnybangkok said:

You seem to be focusing on one small area but we can take cars as an example of what this is all about.

 

I am not disagreeing that Thailands taxes on imported cars is prohibitively high but it worked for Thailand, with many major car manufacturers having large car plants in Thailand for both the local market and for export.  If you have a look around the roads at any time do you think there's a lack of those Ford Rangers on the road? There isn't as they are manufactured here because they need to be (as Patong pointed out) right-hand drive, which of course most American cars aren't and would require a big change in production to become right-hand drives. So even if this tax was dropped tomorrow, do you think there will be a mad rush to buy other American cars? And even if there was, do you think it will make up for the $45B trade deficit? Car manufacturers are not dumb. If they thought they would have a large market in Thailand then they would have already built a plant here hence why Toyota, Honda, Mitsubushi, Isuzu, Mazda, Ford, BMW, Mercedes, Tata and Diahatsu all have manufacturing plants in Thailand. Those that aren't here do not see the demand.

Trump is focusing these tariffs on trade deficits NOT who tariffs who and on which items. Even if Thailand dropped ALL tariffs on all American products tomorrow, there still wouldn't be enough demand to close the trade deficit and therefore it's unlikely to have him change his mind.

 

So for all those going on about the tariffs - it's not JUST about tarriffs, it's about trade deficits which are 100 times harder to close. Trump thinks he will force manufacturers to start manufacturing in the USA but that simply isn't going to happen so all that is going to happen is higher prices for American consumers and more misery for countries that he's set tariffs on.     

Exactly, this is about trade deficit and not tariffs. That can clearly be seen on the board Trump used to compare tariffs. The tariffs charged to the US on his board are far higher than what is actually charged.

[Chongalulu]

19 hours ago, jas007 said:

Why everyone seems to think the tariffs are some sort of a crisis is beyond me.   The tariffs are reciprocal.  If a country doesn't like them, the solution is simple.  Stop putting tariffs on things from the USA. Problem solved.  

 

By this time next month, no one will be talking about tariffs. 

Just to prove your economic understanding tell us what you understand of the complex formula used (which includes trade imbalances) to calculate tariffs charged . Diane Abbott is available to help….

 

20 hours ago, impulse said:

 

Here's a thought.  Reduce the 72% tariffs being levied on American imports into Thailand.  You're still only getting half the rate.  I wouldn't be surprised (or disappointed) to see the 36% rate increase even more if there's no reciprocal movement.

 

 

 

There aren’t 72% tariffs on USA imports- the formula which includes trade imbalances is rather more is thus the formula boils down to simple maths: take the trade deficit for the US in goods with a particular country, divide that by the total goods imports from that country and then divide that number by two.

 

[barmatt]

20 hours ago, jas007 said:

Why everyone seems to think the tariffs are some sort of a crisis is beyond me.   The tariffs are reciprocal.  If a country doesn't like them, the solution is simple.  Stop putting tariffs on things from the USA. Problem solved.  

 

By this time next month, no one will be talking about tariffs. 

Thats because everyone will be unemployed. It will be too expensive to buy anything killing all industries. But Trump and his billionaire buddies will be ok.

Prepare for a depression.

 

[spambot]

6 hours 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.

• 72% Thai Tariff: Likely is inaccurate or misinterpreted. It’s not supported by Thailand’s known tariff structure and seems to be a U.S. construct for justifying the 36% reciprocal tariff. Verification is impossible without the actual source or White House methodology, which remains opaque.
• Trade Figures: Mostly verifiable from U.S. (BEA/Census) and Thai (Commerce Ministry) records. The $45.6 billion deficit, $63.3 billion imports, and 36% tariff are solid; the $35.4 billion surplus is credible but varies from U.S. data due to reporting differences, but contain only a minor difference.

In short, the trade stats are grounded in official data with high confidence, while the 72% tariff claim is dubious and likely oversimplified or exaggerated for policy purposes. 

 

The trade stats even while grounded in official data with high confidence, its not that simple to work out what is reasonable and fair until you identify  what are the actual goods or services that are being counted in the deficit balance of $35.4 billion if most of this deficit is a very low number.

 

For example WTO acceptance remains a foundation of most countries import duty methods all countries agreeing that some imports are categorised to be within a "common Industrial integration" and is an accepted principle that will benefit world growth and can never be a zero sum game for any single country. Hence low duties of between 0% to 2.7% has been agreed to be accepted practice between trading partners, average being 1%. There is no figure for this sector in the US calculation and might account for a large proportion of the Thailand export trade deficit to the USA and if so the $35.4 billion might be close to irrelevant since the duty is so small.

 

Other considerations exist in many areas that complicate the argument. For example anyone that brings into Thailand USD this value  has been reported from sources in the White house as being counted as in the import trade deficit rather than a balance of payment deficit which should have been the case. If this is the case there is no 72% taxation on US citizens bringing their USD into Thailand. Or a different way of looking at this for Thailand to reduce the deficit it could refuse US citizens bringing USD into Thailand or patriotic US citizens could be encouraged in returning to the USA., but obviously neither of these would be a realistic solution. VAT has been stated being used as consideration as an import tax, but whether any goods or service originated from the home country or was on an imported goods or service from the USA in each situation this would be subject to the same VAT and hence this is not discriminatory to the USA.

 

The bottom line is that sometimes the figures quoted are just a way to justify an unpopular action, but really in in the pragmatic world these headline figures might need better consideration for what is reasonable.

 

The problem right now there is no breakdown of how the 72% import duty was calculated nor what products and services are contained in $35.4 billion deficit. If the deficit in the $35.4 billion is mostly at a very low percentage then imposing the 36% retaliation duty is unfair or at least difficult to justify.

 

The new tariffs could have been imposed without a justifying argument, but the decision was to attempt to justify the import tariffs. To really to make a compelling argument or at least open up the argument to reasonable discussion, full transparency could have been made available of all the input figures used in reaching each of these headline conclusions. Until full transparency occurs, it is mostly irrelevant what headline figure is being used to justify tariffs imposed and more importantly also difficult for adults to have a meaningful dialogue.

[johnnybangkok]

29 minutes ago, nakhonandy said:

Exactly, this is about trade deficit and not tariffs. That can clearly be seen on the board Trump used to compare tariffs. The tariffs charged to the US on his board are far higher than what is actually charged.

At last, someone gets it!

[vinny41]

35 minutes ago, johnnybangkok said:

You seem to be focusing on one small area but we can take cars as an example of what this is all about.

 

I am not disagreeing that Thailands taxes on imported cars is prohibitively high but it worked for Thailand, with many major car manufacturers having large car plants in Thailand for both the local market and for export.  If you have a look around the roads at any time do you think there's a lack of those Ford Rangers on the road? There isn't as they are manufactured here because they need to be (as Patong pointed out) right-hand drive, which of course most American cars aren't and would require a big change in production to become right-hand drives. So even if this tax was dropped tomorrow, do you think there will be a mad rush to buy other American cars? And even if there was, do you think it will make up for the $45B trade deficit? Car manufacturers are not dumb. If they thought they would have a large market in Thailand then they would have already built a plant here hence why Toyota, Honda, Mitsubushi, Isuzu, Mazda, Ford, BMW, Mercedes, Tata and Diahatsu all have manufacturing plants in Thailand. Those that aren't here do not see the demand.

Trump is focusing these tariffs on trade deficits NOT who tariffs who and on which items. Even if Thailand dropped ALL tariffs on all American products tomorrow, there still wouldn't be enough demand to close the trade deficit and therefore it's unlikely to have him change his mind.

 

So for all those going on about the tariffs - it's not JUST about tarriffs, it's about trade deficits which are 100 times harder to close. Trump thinks he will force manufacturers to start manufacturing in the USA but that simply isn't going to happen so all that is going to happen is higher prices for American consumers and more misery for countries that he's set tariffs on.     

It's not just trade  deficits it's also about which countries have erected trade barriers to prevent American products reaching their markets either through outright ban's or extremely high tarrifs

Australia has no trade deficit with the USA however the have banned the import of USA meat
I have no issue if a country wants to ban the import of a certain product from a country but it should be a 2 ways the country bans the import and exports of that product to that country

 

Trump tells UK to buy chlorinated chicken from US if it wants tariff relief

https://www.independent.co.uk/news/uk/politics/trump-tariffs-chlorinated-chicken-uk-b2726709.html

 

Many Thai nationals have told me they would have bought an European car if the high tariffs weren't in place

they have a perception that European cars are better built although I must admit I don't share that view myself

having purchased some complete lemons

So Thai nationals bought MG because they thought they were buying a British car

I think you will find that  American consumers will purchase vehicles that come with the lowest tariff loading but I suspect American built since the tax breaks on the interest purchase for American built seems to be a no-brainier

 

 

[JonnyF]

51 minutes ago, johnnybangkok said:

Even if Thailand dropped ALL tariffs on all American products tomorrow, there still wouldn't be enough demand to close the trade deficit and therefore it's unlikely to have him change his mind.

 

 

I think he would change his mind in such an event.

 

It would be excellent PR for him. 

 

"See, we only wanted fairness/reciprocity. Thailand has done the right thing by dropping their tariffs on US products and shall therefore be rewarded. Who's next?".

 

Just because he used the trade imbalance in his calculation, doesn't mean he won't remove tariffs until the trade imbalance is zero. 

[NorthernRyland]

1 hour ago, johnnybangkok said:

Trump is focusing these tariffs on trade deficits NOT who tariffs who and on which items. Even if Thailand dropped ALL tariffs on all American products tomorrow, there still wouldn't be enough demand to close the trade deficit and therefore it's unlikely to have him change his mind.

 

They need a plan to lift the tariffs if Thailand complies with some terms but I haven't heard they have any such plans. I don't see how the trade deficit between the US and Thailand could be 1:1 ever unless Americans simply stop buying Thai products but that isn't in anyones interest.

[vinny41]

Pact expected to help double trade with European Union

 

“Both Thailand and the EU now have a strong political will to accelerate this FTA,” said Mr Somjai.

He attributed the delay in FTA negotiations with the EU not only to political issues, but also to Thailand’s reluctance to accept the costs associated with an FTA.

 

“Thailand’s previous approach to the agreement focused solely on the benefits, while resisting acknowledgment of the potential losses. From an absolute perspective, an FTA entails both gains and losses, but ultimately benefits both parties. This balanced approach is key to achieving a successful agreement,” said Mr Somjai.

He said he is confident that after the FTA is signed, two-way trade between Thailand and the EU will increase significantly, as import duties between the two sides will be eliminated, except for a few exceptions. This will enable Thailand to expand its trade volume with all 27 EU member states.

https://www.bangkokpost.com/business/general/2983105/pact-expected-to-help-double-trade-with-european-union

Personally I don't think the EU will sign off this FTA without the removal of the  Huge imbalance of import tariffs on automotive sector 
 

[NorthernRyland]

6 minutes ago, JonnyF said:

I think he would change his mind in such an event.

 

It would be excellent PR for him. 

 

"See, we only wanted fairness/reciprocity. Thailand has done the right thing by dropping their tariffs on US products and shall therefore be rewarded. Who's next?".

 

If Thailand removes their various taxes on imports that's all they can do and then it's up to the market. I would totally disagree with Trump putting tariffs on Thailand simply because there is a trade deficit. I agree this is probably the first step in a greater bargain they can do down the road.

 

The worst thing to do is what we have been doing, which nothing and just sitting there and taking all this one sided trade with countries that have interest in being fair at all.

[Captain Flack]

Off topic post removed.