Thailand has prepared more economic stimulus focused on creating jobs, Finance Minister Pichai Chunhavajira said on Thursday, adding that a 90-day pause on US tariffs announced overnight would give officials more time to prepare a response.
US President Donald Trump said he would temporarily lower the hefty duties he had just imposed on dozens of countries, including a 36% tariff on Thai exports, while further ramping up pressure on China. The climbdown came after the threat of punishing levies roiled markets and sparked fears of a recession.
"As the situation changes, we have to adjust," Mr Pichai told reporters, adding that Thailand will focus on balancing trade.
A drop in exports would impact manufacturing and employment and so mitigation measures had been prepared, he said.
When the tariffs were announced last week, Mr Pichai had said they could cut growth in Southeast Asia's second-largest economy by 1 percentage point.
Thailand has said it would increase imports from the United States and lower tariffs as it seeks to negotiate a better deal.
Measures imposed this week to curb stock market volatility will be eased later in April, Mr Pichai said.
Thailand's trade surplus with the United States totalled US$45 billion last year.
The Thai government has offered to step up imports of energy, agriculture products and aircraft, as well as reducing import taxes.
Thai stocks open higher
On Thursday morning, the SET Index rose around 4.5% on Thursday morning, following the US announcement of the 90-day pause.
The main index was up 48.85 points to 1,137.03 shortly after opening, a rise in line with other Asian markets relieved by the tariff respite.
The SET this week imposed a ceiling and floor on stock trading to 15% from 30% and banned short-selling to reduce volatility.
Asean ministers discuss response to Trump tariffs
Members of the Association of Southeast Asian Nations (Asean) were discussing on Thursday what they can do as a group to respond to President Trump's trade plans.
"We welcome this move while acknowledging that this volatility creates significant challenges for Asean economies," Malaysia's Minister of Investment, Trade and Industry Zafrul Aziz said in a LinkedIn post. "Asean unity and regional economic integration will be more crucial than ever before."
The Asean logo is displayed outside the venue of the Asean Finance Ministers' and Central Bank Governors' Meeting in Kuala Lumpur, Malaysia, on Tuesday. (Photo: Reuters)
Ministers from the group of 10 Southeast Asian countries will be discussing the latest developments and other topics on Thursday, Zafrul, who will be chairing the meeting, said.
The ministers are having a virtual meeting, a spokesman at Malaysia's Ministry of Investment, Trade and Industry told Bloomberg News. Malaysia is the current chair of Asean, whose members were poised to be among the hardest hit by the levies.
Malaysia will continue to be "an open, reliable trading and investment partner" to all countries, including China and the US, Zafrul said. Chinese President Xi Jinping will visit the Southeast Asian nation from April 15 to 17.
Asean countries are examining the policy responses to support their economies while seeking relief from the tariffs in planned talks with the US.
Vietnam, US to start trade talks
Vietnam and the United States agreed to start negotiations on a reciprocal trade agreement, Hanoi said Thursday.
The United States was Vietnam's biggest export market in the first three months of the year, but President Trump hit it with a 46% duty as part of a global trade blitz announced last week.
After Trump paused the stiff new tariffs on Wednesday, Vietnam's Deputy Prime Minister Ho Duc Phoc suggested the two countries "should soon negotiate a bilateral trade agreement... to promote stable and mutually beneficial economic and trade relations", according to a statement on the government news portal.
Phoc has been appointed by top leader To Lam to negotiate with the United States on tariffs, and he met with US Trade Representative Jamieson Greer on Wednesday.
"The United States agreed that the two sides should initiate negotiations on a reciprocal trade agreement, which would include tariff agreements, and asked technical levels from both sides to begin discussions immediately," according to the government statement.
Phoc had meetings with senators and many organisations and businesses while in the United States, the statement added.
Vietnam had previously asked Trump for a delay of at least 45 days for the new tariff.
Experts said the levy could seriously damage Vietnam's growth model, which relies heavily on exports to the United States.
The country pledged to buy more US goods including security and defence products as it sought a reprieve.
Trump claimed the communist country charges the United States a 90% tariff, a figure based on Vietnam's trade surplus with the United States, worth $123.5 billion last year.
His administration also appeared particularly angry about what it sees as the country's role in attempts to get around tariffs imposed on China.
Vietnam said in the statement Thursday that it had "proactively addressed many concerns of the US".
Philippines keen to explore trade talks
The Philippines has also reached out to the US Trade Representative to explore potential trade negotiations, with the best outcome being a free-trade agreement (FTA), according to Frederick Go, the Special Assistant to the President for Investments and Economic Affairs of the Philippines.
"Let's see what we can negotiate," Go told a media briefing.
