The automotive and agricultural sectors are crucial areas requiring negotiation with the US to address the reciprocal tariffs imposed on Thai imports, says Kobsak Pootrakul, director and senior executive vice-president of Bangkok Bank.
The former minister to the Prime Minister's Office said the government must be well-prepared with trade policies and strategies for negotiations with the US, following Washington's decision to impose a 36% reciprocal tariff on Thai goods.
Thailand's trade strategy should focus on the automotive and agricultural sectors, in particular, which have recently raised concerns from the US, said Mr Kobsak.
In a recent address, US President Donald Trump said high tariffs in many sectors continue to hinder access to the Thai market for many US products.
The highest ad valorem (value-based) tariff rates apply to imports competing with locally produced goods, including automobiles and auto parts, motorcycles, beef, pork, poultry, tea, tobacco, flowers, beer and spirits, and textiles and apparel.
Wine imports are subject to a 54% tariff and six different duties and taxes that when combined equal nearly 400%.
Industry stakeholders have raised concerns about the import tariffs on wine and disparate ad valorem taxes that appear to favour domestic white liquor.
"Under tentative reciprocal negotiations, Thailand may need to accept increased imports of US goods, such as passenger aircraft and gifted aircraft, as part of the tradeoff," he said.
"The US may also encourage Thai investments, creating opportunities for Thai businesses seeking to expand into the American market."
Mr Kobsak cited Japan as an example, noting Tokyo pledged investments in the US totalling US$1 trillion, including in the steel sector. Japan also committed to purchasing American weapons and liquefied natural gas.
Following only Israel, Japan was the second country to enter negotiations with Trump following the imposition of reciprocal tariffs.
Mr Kobsak said US reciprocal tariff measures on other countries are primarily aimed at countering China.
As a result, both the trade and technology wars between the US and China, along with global trade uncertainties, are expected to persist for the next four years, aligning with Trump's term.
Thailand will face heightened uncertainties over the next four years, especially an influx of cheap goods from China that could hamper local small businesses, he said.
In addition to Chinese goods, imports from other countries worldwide are expected to flood into Southeast Asia, intensifying trade competition in the region for the next four years, said Mr Kobsak.
"As a result of the tech war between the US and China, competition in technological development will intensify, which could cause Thailand to fall behind and be left out," he said.
According to Mr Kobsak, amid the escalating trade and tech wars between the US and China, coupled with intensified geopolitical risks, Thailand must carefully assess both the challenges and opportunities to strike a balance and coexist with all parties.
"For example, Thailand should explore opportunities in exporting electronic goods that support both the iOS and Android systems," he said.
Regarding tentative negotiations between Thailand and the US, the Thai government should continue to monitor the situation even after Trump's term ends.
"Some US policies that were dismissed by Trump could be reinstated by the next president, particularly those related to green and sustainable policies," said Mr Kobsak.
