Preparing for the tariff impact

Electrical appliances and electronics could also face a severe impact, as major Thai exports to the US such as rice cookers, air conditioners and washing machines would likely lose their competitive edge to Vietnam and Mexico if tariff rates increase, said Mr Dhanakorn.

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Thai exports of furniture and household items to the US ramped up amid the US-China trade war. These sectors face stiff competition from Vietnam, which benefits from certain tariff exemptions and lower labour costs.

Rubber products, including gloves and tyres, are also at risk, especially if the US imposes anti-dumping or countervailing duties, which could impact exports. Malaysia and Indonesia are significant competitors in this field.

Processed agricultural goods, such as frozen foods and canned fruit, may come under scrutiny for relying on inexpensive labour, raising fair trade concerns that may affect US tariffs, according to the TNSC.

ADDRESSING CHALLENGES

In the future, Mr Dhanakorn said digital trade taxes and tariffs linked to environmental, social and governance (ESG) concerns could create new challenges, pressuring Thailand in these areas.

To address these challenges, he said Thailand must pursue an FTA with the US. An alternative could be developing another version of the Generalized System of Preferences, along with a trade framework that creates a foundation for dialogue and mitigates risks, said Mr Dhanakorn.

He said Thailand should gather data on comprehensive production costs and ESG to address claims of labour exploitation and environmental harm.