US levies scupper Thailand's chances of 3% GDP growth

Thai GDP is unlikely to reach the target of 3% growth this year because of US President Donald Trump's tariffs, says finance permanent secretary Lavaron Sangsnit.

- WICHIT CHANTANUSORNSIRI

According to Mr Lavaron, the economic conflict between China and the US will inevitably affect the global economy, including Thailand.

He said the Finance Ministry's forecast of 3% GDP growth this year appears difficult to achieve. However, the ministry is committed to doing its utmost to bring GDP growth as close as possible to the 3% target, said Mr Lavaron.

While some research houses have estimated Thai growth at 0.5% or 1% this year, he said it is too early to clearly assess the full impact, as there is still uncertainty surrounding the outcome of trade negotiations between Thailand and the US on import tariff rates and goods.

Regarding the negotiations, Mr Lavaron said while the US pointed to its trade deficit as the main trigger for tariffs, the nation is not focusing solely on economic or trade aspects in negotiations. In fact, the US is also considering other dimensions such as foreign policy and national security, he said.