Thailand's growth to slow over next 2 years due to tariffs, minister says

BANGKOK: Thailand's economic growth may slow down over the next two years due to steep US tariffs, but state-owned banks will provide support to exporters and supply chain businesses affected, its finance minister said on Thursday (May 15).

"Within the next two years, we should see quite a few stumbles. The ones who will stumble are likely to be in the export sector," minister Pichai Chunhavajira said at a meeting with state-owned banks.

However, Thailand is not expected to see a greater tariff impact than other countries, Pichai said.

Thailand faces a 36 per cent US tariff if a reduction cannot be negotiated with Washington before a moratorium expires in July. The United States has set a 10 per cent tariff for most nations while the moratorium is in place.

Thailand has sent a trade proposal to the United States as part of its efforts to avoid the high tariffs.

In a statement, Pichai said the government plans soft loans worth 100 billion baht (US$3 billion) to support impacted supply chain businesses and exporters of goods to the United States, as well as those affected by increased imports from China. 

State-owned banks will also prepare measures to boost the agricultural and property sectors, as well as offering interest rate reductions for those impacted.