Thai Manufacturers Brace for Impact of Trump’s Policies
December 4, 2024 – A wave of anxiety is rippling through Thailand’s manufacturing sector as business leaders await the full ramifications of Donald Trump’s presidency.
A recent survey conducted by the Federation of Thai Industries (FTI) reveals widespread concern over the potential impact of Trump’s economic policy on Thai businesses. Nearly all of the 150 executives surveyed, representing various FTI member companies, anticipate a shift in the global economic landscape.
While many respondents believe the impact will be moderate, over a quarter foresee a significant disruption to their operations.
"Most are moderately concerned about new policies from Washington as they await more clarity after Trump takes office on Jan 20," said ML Peekthong Thongyai, vice-chairman of the FTI.
The survey highlighted several specific concerns, with trade and investment emerging as the top worry, cited by 62% of respondents. Fluctuations in the baht’s value, potential geopolitical conflicts, and disruptions to the capital market also ranked high on the list of anxieties.
Perhaps the most pressing fear, voiced by 66% of those surveyed, stems from the threat of increased US tariffs on imported goods. Trump’s campaign promises included significant tariffs, potentially as high as 10-20% on all imported products, with even steeper levies on goods from China.
Beyond tariffs, Trump’s "America First" policy, which emphasizes bringing jobs back to the US, was also a significant concern for 31.3% of respondents. The potential withdrawal from the Paris Agreement, a landmark accord aimed at combating climate change, caused concern for 30.7%. This decision, coupled with Trump’s preference for bilateral agreements over multilateral partnerships, further unsettled the Thai business community.
Faced with these uncertainties, Thai manufacturers are seeking ways to adapt. Many respondents stress the need to elevate product quality to meet global standards and explore new export markets beyond the US.
The full impact of Trump’s policies on Thailand remains to be seen, but the anxiety within the manufacturing sector signals a period of considerable uncertainty and adaptation for Thai businesses.
