Act fast to claim your place amid shifts

The intensifying China-US rivalry and rapid shifts in the world economy have become a double-edged sword for Thailand, offering a rare window to secure a place in realigning supply chains, yet threatening to leave the country behind if it fails to accelerate reforms, enhance competitiveness and reskill its workforce in time.

- BOONSONG LIPIMAS

A tariff and export control dispute in 2018 coupled with the trade war tariffs imposed by US President Donald Trump since August 2025 has evolved into a broader effort by governments and multinational firms to reduce strategic dependence on single suppliers.

Adding to the uncertainty is the global push for dedollarisation, which has gained momentum as the US continues to print money and accumulate trillions of dollars in debt.

This shift is already changing where goods are produced and how capital moves across borders, and analysts say 2026 will be a pivotal year.

For Thailand, the impact cuts both ways. Kasikorn Research Center warned higher trade friction and tighter US export controls present downside risks for Thai exporters, especially in electronics and intermediate goods, which have become more volatile amid policy uncertainty.