The People's Party (PP) says it is on board with the government's plan to launch trade negotiations with the United States after US President Donald Trump announced a 37% tariff on Thai imports on Wednesday.
PP MP Sirikanya Tansakul, in her capacity as the party's deputy leader, stressed the need for immediate discussions in an effort to get the tariff reduced to the baseline rate set at 10% by the US, noting the rate imposed on Thailand is higher than those imposed on other countries in the region.
According to Ms Sirikanya, the new tariff could cut the value of Thai exports by 1%, which would lead to a GDP decline of over 1%.
"If the negotiations are delayed or unsuccessful, the nation's GDP could drop by over 2% this year," Ms Sirikanya said.
Careful negotiations are crucial, as even if the tariff imposed on Thailand is brought down to 10%, the country's GDP will still decline by about 0.3%, she said.
Among the industries that are likely to be hard hit by the US tariffs are communication equipment, hard-disk drives, tyres, and electrical appliances, she said.
Another PP deputy leader, Veerayuth Karnchuchat, said the new tariff will put additional pressure on the economy, particularly on the manufacturing sector and employment, as the United States is Thailand's primary export market.
He warned the government not to underestimate the indirect impact of the tariff, which includes the emergence of new competitors for Thailand and disruptions to supply chains.
He said that the four trade barriers that were cited by the US as reasons to impose higher import taxes should be addressed separately.
Mr Veerayuth then called on the government to be more proactive, as the trade war is likely to escalate.
PP list-MP Sitthipol Wibulthanakul warned about the possibility of Chinese goods flooding the domestic market, as Chinese manufacturers will start to seek alternative markets for their products.
Thai businesses, especially small and medium-sized enterprises (SMEs) in sectors such as furniture, textiles, and rubber product manufacturing, must be prepared for fierce competition this year, he said.
