Expert urges cutting reliance on US buyers

The Thai government has been advised to reduce its dependence on the US market, which is expected to shrink under US President Donald Trump's reciprocal tariff policy.

- WICHIT CHANTANUSORNSIRI

Instead, Thailand should move quickly to tap emerging markets created by China's extensive overseas investments, which are giving rise to a new global supply chain, said Sompop Manarungsan, an analyst on the US and Chinese economies and president of Panyapiwat Institute of Management.

He said the US would encounter serious challenges in the long run if it maintains its current tariff regime.

“As economist Paul Krugman has forecast, the average tariff rate could cut US imports by as much as 36%. This would mean US imports, previously worth more than US$3 trillion, could fall to less than $2 trillion. Therefore, we cannot pin our hopes on the US market in the future because exports will shrink and Thai goods face a 19% tariff,’ said Mr Sompop.

American consumers, like those in other countries, are likely to tighten their spending, with some industries potentially reshoring production back to the US. This would make US-made goods competitors to imports, he said.

Trump pressured Japan to invest $550 billion in the US, South Korea to invest $350 billion, the EU $600 billion, Nvidia $500 billion, and Apple $600 billion.