Thai consumer confidence dropped for a second straight month in March to hit its lowest level in five months due to higher living costs, sluggish economic growth and concern over US trade tariffs, a survey showed on Thursday.
The consumer index of the University of the Thai Chamber of Commerce (UTCC) fell to 56.7 in March from 57.8 in February, the university said in a statement.
"It's clear that the fallen confidence index was driven by the trade war, which may cause problems for Thai exports and tourism and slow economic recovery," UTCC president Thanavath Phonvichai told a press conference.
Thailand is among the countries in Southeast Asian nations hardest hit by US President Donald Trump's measures, with a much bigger than expected 36% tariff. However, a 90-day pause on the US tariffs announced overnight will give officials more time to prepare a response. Trump said he would temporarily lower the hefty duties he had just imposed on dozens of countries, while further ramping up pressure on China.
Mr Thanavath said if Thailand could negotiate to bring the tariffs down to 10%, the damage could be around 100 billion baht to 150 billion baht (US$2.93 billion to $4.40 billion), lowering growth by 0.7 to 0.9 percentage points. When the 36% tariff was announced last week, Finance Minister Pichai Chunhavajira said it could cut growth in Southeast Asia's second-largest economy by 1 percentage point.
The Thai economy grew just 2.5% last year, lagging regional peers. Thailand has said it would increase imports from the United States and cut tariffs as it seeks to negotiate a better deal.
