Thai Prime Minister Paetongtarn Shinawatra is confident of lowering the tariffs via talks. (EPA Images pic)
BANGKOK: Thailand has a “strong plan” to handle swingeing new trade tariffs imposed by US President Donald Trump and hopes to negotiate a reduction, the prime minister said today.
Paetongtarn Shinawatra said the government would take steps to mitigate the impact of the 36% levy announced by Washington as part of sweeping tariffs that have sent global markets reeling.
Trump escalated his trade war yesterday with 10% tariffs on imports from around the world and harsh extra levies on key trading partners.
Southeast Asian countries with a significant trade surplus with the US came in for harsh treatment, with Vietnam being hit with a 46% tariff and Cambodia 49%.
“We have a strong plan,” Paetongtarn told reporters.
“We have prepared several steps, including sending our permanent secretary to talk with them… I think we can still negotiate.”
Trump dubbed his announcement “Liberation Day”, saying it would bring wealth to the US, but allies immediately criticised the move and markets took fright.
Thailand’s deputy finance minister Julapun Amornvivat said the government was not surprised to be hit with tariffs, though the level was higher than anticipated.
“We have to negotiate with understanding, not aggressive talk, but we have to talk which products they feel are unfair and we have to see whether we can adjust,” he said in a video interview posted online.
Finance ministry officials will meet to discuss steps to mitigate the immediate impact, he said, as well as drawing up guidelines for future negotiations.
Paetongtarn, whose father Thaksin Shinawatra came to power as Thai PM in the wake of the late 1990s Asian financial crisis, hosts her Indian counterpart Narendra Modi today.
The pair will hold talks ahead of a summit tomorrow of the Bimstec group of mostly South Asian countries plus Thailand and Myanmar, whose junta chief is making a rare foreign trip to attend.
