Coming up for air

Trade tensions remain on edge despite China reaching an agreement with the US to pause tariffs for 90 days, write Phusadee Arunmas, Lamonphet Apisitniran and Molpasorn Shoowong

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After the US announced on April 9 it would temporarily suspend tariff hikes on several countries for 90 days, the global trade sector breathed a sigh of relief.

Yet trade tensions remain elevated even after China reached an interim agreement with the US on May 12 to pause tariffs for a period of 90 days for further negotiations to take place.

Negotiations with other countries have progressed, as the UK recently concluded a vague trade deal with the US, while Japan completed two rounds of negotiations. However, on Friday US President Donald Trump said the country will not negotiate on tariffs with most nations, instead sending letters to them detailing tariff rates.

Thailand has registered slower progress, sparking concerns in the business community as the timeline regarding its tariff suspension is elapsing.

With China set to benefit from the 90-day pause, Thailand may find itself at a competitive disadvantage if its negotiations are not concluded promptly.

POTENTIAL EFFECTS

Dhanakorn Kasetrsuwan, chairman of the Thai National Shippers' Council (TNSC), said the US-China agreement to pause their reciprocal tariffs for 90 days has created an advantageous window for China that's about a month longer than many other countries.

"This period allows China to ramp up exports of essential products, become more competitive on pricing, and seize market share in areas where Thailand is also active, including electrical appliances, machinery, and processed agricultural goods destined for the US market," said Mr Dhanakorn.

The TNSC urged the government to swiftly negotiate with the US to maintain tariff benefits and collaborate with the private sector to initiate strategies to counteract potential challenges.

Temporary price adjustments in key markets should also be considered, he said.