Economy Thailand Allocates 42 Billion Baht to Counter US Trade Impact

[snoop1130]

Photo courtesy of Bloomberg

 

In an urgent move to support local businesses, the Thai government has redirected 42 billion baht from a digital wallet scheme to combat the economic repercussions of the United States’ stringent tariff policies. This decision comes as the US trade measures, initiated under President Trump, begin to significantly affect Thai entrepreneurs.

 

An anonymous source from Government House has disclosed that these tariffs could severely impact local enterprises. As a countermeasure, the economic stimulus committee has resolved to use these funds to mitigate the fallout and prevent potential job losses.

 

Finance Minister Pichai Chunhavajira has confirmed this reallocation, stating that most of the unspent funds from the government’s 157-billion-baht stimulus budget will now address these trade challenges. “Our priority is immediate support for businesses facing disruption,” Pichai affirmed, noting that tax negotiations with the US are progressing. “I’ll be sending responses to their queries today.”

 

When questioned about securing similar tariff terms to other ASEAN nations, Pichai remained optimistic but cautious, saying, “As the negotiator, I remain hopeful.”

 

Originally intended for a digital wallet distribution programme, this unspent budget has transformed into a crucial resource for shoring up Thailand’s underperforming economy. Deputy Prime Minister and Interior Minister Phumtham Wechayachai, acting as interim prime minister, emphasized the urgency of strengthening the economic structure.

 

“The current investment ratio to GDP is alarmingly low. We must address these structural weaknesses promptly before they worsen,” Phumtham stated during a committee meeting.

 

Of the initial 157 billion baht economic plan, 115 billion had been set aside in June for infrastructure projects such as roads and waterworks, projected to boost GDP by 0.4 to 0.5 percentage points. This left 42 billion baht now allocated for private sector support.

 

Deputy Government Spokesperson Sasikarn Wattanachan underscored that the budget reallocation is about more than just filling the gaps. “We must stimulate growth and prepare our economy for future challenges,” she remarked. “This includes supporting affected businesses, enhancing competitiveness, and investing in human capital.”

 

The committee is tasked with meticulously evaluating new proposals to ensure they comply with legal standards, maximise public benefit, and align with long-term reform objectives. Officials highlight that the ongoing tariff dispute with the US has revealed vulnerabilities in Thailand’s export-dependent economy that cannot be overlooked any longer.

 

In essence, this strategic budget shift represents not only an immediate response to international trade pressures but also a broader initiative to fortify the Thai economy against future challenges. As negotiations continue, the government remains focused on safeguarding and stimulating its business landscape while adapting to evolving global trade dynamics.

 

  Adapted by ASEAN Now from The Thaiger 2025-07-25

 

 

[ozz1]

Great what is going to happen when the money runs out they love giving away money but with the tensions at the border and the tourism down it's got to rattle their money reserves and the elites will have their hands in the till

[John Drake]

2 hours ago, snoop1130 said:

Finance Minister Pichai Chunhavajira has confirmed this reallocation, stating that most of the unspent funds from the government’s 157-billion-baht stimulus budget will now address these trade challenges.

 

I thought the stimulus plan was dropped because there wasn't any money left. Where did this come from? Why isn't the baht dropping with so much government cheese being handed out like this?

[Peabody]

So, of the money promised just prior to the last election, money that was supposed to be distributed at 10K/person, they issued some of the promised money early on, but retained most of it. Now 115 billion has been allocated to big construction companies (Ital-Thai et al) and the balance has been allocated directly to selected (by whom?) businesses. Why not distribute that 45 billion and let the poor recipients spend it? It will eventually wind up in their pockets anyway - the "trickle up" model.

Rhetorical questions.

[WHansen]

Take away what was promised to the poor, realise the poor hate them for it and now reallocate it to look after the rich under the guise of help towards the tariff increases which opens up the doors for it to be lost track of and end up in the pockets of those administering it. 

And some claim Thailand isn't a third world country.

[crazykopite]

Printing more money soon the country will be nearing bankruptcy 

[hotchilli]

15 hours ago, snoop1130 said:

In an urgent move to support local businesses, the Thai government has redirected 42 billion baht from a digital wallet scheme to combat the economic repercussions of the United States’ stringent tariff policies. This decision comes as the US trade measures, initiated under President Trump, begin to significantly affect Thai entrepreneurs.

So instead of addressing the trade imbalance, the transnational shipping of Chinese goods, Thailand chooses to subsidise Thai products.

They really don't get it do they.

[spidermike007]

Just say no to US extortion. Just say no to the circus clown. Say no to hubris and economic destruction. Say no to ugly American exceptionalism. 

 

 

[Harrisfan]

1 minute ago, spidermike007 said:

Just say no to US extortion. Just say no to the circus clown. Say no to hubris and economic destruction. Say no to ugly American exceptionalism. 

 

 

Show some respect to your President.

[J Branche]

Anyone found the details that Thailand is offering to the US.  I've read zero tax on imports but think this is false.  Probably zero tax on select imports (Corn, Wheat, Soybeans, US Beef)

 

What is Thailand hiding? 

 

Thai people deserve to know what its country is offering to get a reduced Tariff rate.

[SOTIRIOS]

...What Impact...Of What... (?)

 

...Another Pretext To Grab Tens Of Billions.... (?)

 

...Is Anyone Counting.... (?)