BANGKOK: No matter how the United States presidential election turns out, a new round of the US-China trade war is almost inevitable, the Thai National Shippers' Council (TNSC) said on Tuesday (Nov 5), urging Thai businesses to prepare for the impact, namely the shifting of manufacturing and export bases.
“No matter who becomes the next US president, the trade war with China will pose a new challenge for Thai businesses,” TNSC chief Chaicharn Charoensuk said, adding that both the US and China have been Thailand’s biggest trade partners in the past years.
Democrat candidate Kamala Harris has promised to raise the tariff on strategic goods, while Republican candidate Donald Trump has said he will impose a blanket tariff increase as well as a 100% tax increase on any country that stops tying its currency to the US dollar basket.
Chaicharn said in the past 7 years, the US-China trade war has benefited Thailand as both American and Chinese manufacturers have shifted their production and export base to the kingdom to circumvent trade barriers.
Due to the trade war, Thailand’s export of electronic products to the US has increased by up to seven times, while the export of tyres has more than doubled, he said.
Exports to the US in nine months of this year have also expanded 12.5% year on year, he added.
“Thailand must maintain a balance in trade and relations with both the United States and China. In the past, Thailand has managed its position appropriately and has leveraged the trade war to its advantage,” said Chaicharn.
“The outcome of this election, regardless of who wins, will have an impact on the global economy, geopolitics, the trade war, and Thailand's exports in 2025.”
The TNSC estimates that Thailand’s exports in 2024 will expand at least 2% year on year, judging from the tally for the first nine months at US$ 223.17 billion, a rise of 3.9% over the same period last year.
“We expect no serious problems in the last quarter this year. Freighting fees and exchange rate are currently at manageable levels, while the number of available shipping containers should be more than adequate,” he said. - The Nation/ANN
