US tariffs expected to dent GDP

Thai growth could dip to 1.3%

- NAREEARAT WIRIYAPONG

The reciprocal tariffs expected to be announced by US President Donald Trump today could shrink Thai GDP by as much as 1.2 percentage points from a forecast of 2.5%, with the Bank of Thailand's one projected interest rate cut doing very little to shore up the economy, says InnovestX Securities.

Thailand is in the "Danger" list of countries that could be affected by Trump tariffs, on average the US tariff on Thai imports is 2%, while Thailand levies an average tariff of 8% on American products.

Thailand's export exposure to the US is less than Vietnam (26%), but higher than Malaysia (37%), according to the brokerage. For its determination of export exposure, InnovestX combines capital goods and intermediate goods.