The Thai parliament has held an urgent debate to explore solutions for mitigating the impact of the US reciprocal tariff. Meanwhile, the government has unveiled its five key measures in response to the tariff.

Thailand faces a 37% tariff rate on all exports to its largest market, the US, following the announcement of global ‘reciprocal tariffs’, putting its economy at risk of a 1% loss of GDP. Simultaneously, a surge in Chinese imports looking for new markets is adding pressure, raising concerns about exacerbated economic strain.

Caught in the middle of a trade war between the US and China, Thailand is becoming a new manufacturing base for Chinese companies, especially in technology. Meanwhile, Thai SMEs are facing an influx of cheaper Chinese goods, leading to concerns that Thailand will face a worsening trade deficit with China and will not be able to compete in the world market.