BANGKOK, May 01: Thailand’s economy is likely to experience short-term turbulence due to global tariff challenges, but the government is working swiftly to minimize the impact, Finance Minister Pichai Chunhavajira said on Thursday.
Speaking at a Ministry of Finance event in Bangkok, Pichai acknowledged that the country could face temporary economic “air pockets” — brief disruptions in growth — as a result of tariff-related volatility. However, he emphasized that the government is proactively taking steps to ensure Thailand’s tariff structures are realigned to be competitive with its global trade counterparts.
“No matter how much the tariff will end up being, if it is at an equal level and equal to our competitors, it will not affect us,” the minister stated. He added that Thailand is engaging in negotiations aimed at harmonizing tariff rates with those of its regional and global trade partners to avoid being at a disadvantage in international markets.
The Southeast Asian economy, which heavily depends on exports, has been navigating through a complex global trade environment marked by rising protectionism and shifting trade alliances. Key Thai industries such as automotive, electronics, agriculture, and textiles are particularly sensitive to tariff fluctuations, which could impact exports and investor confidence.
To counter these effects, Pichai noted that the government is also working on broader economic reforms aimed at diversifying Thailand’s export base, strengthening domestic consumption, and attracting foreign investment through incentives and infrastructure development.
The finance minister’s comments come as Thailand prepares to enter trade talks under various bilateral and multilateral frameworks, including ASEAN trade dialogues and potential updates to existing free trade agreements (FTAs).
Analysts say that aligning Thailand’s tariff policies with global standards is critical to maintaining competitiveness, particularly as neighboring economies like Vietnam and Indonesia aggressively pursue trade liberalization.