6 days ago
At least B20 billion set aside for tariff relief
The Ministry of Finance has budgeted at least 20 billion baht for relief efforts to cushion the impact of US tariffs on Thai businesses.
Now that the 19% tariff rate on imports from Thailand has been confirmed, it has become more evident which sectors and products would be affected, said Lavaron Sangsnit, the ministry's permanent secretary.
He said the relief measures will cover both industrial and agricultural products. For farming, the focus is on reforming the sector to ensure its long-term survival.
The key issue in agriculture is the large amount of land and labour used, as yields per rai remain low, causing agriculture to account for only 8% of GDP, said Mr Lavaron.
'If the structure of the agricultural sector remains unchanged, it will not be able to survive,' he said.
The government has 24 billion baht remaining from its 157-billion-baht stimulus fund, and the sum could be used to address the impact of the tariffs, said Mr Lavaron.
If that amount proves insufficient, the government has allocated an additional 25 billion baht in the fiscal 2026 budget, which begins in October, for further support.
Local content questions
In a related development, Mr Lavaron said Washington has not yet provided clarity on what proportion of local content will be required in order for products to avoid additional transshipment penalties.
Thailand is one of many countries still unsure about the final threshold for local content, he said.
Thailand, like many countries, has also pledged to purchase more Boeing commercial aircraft to bring down its trade deficit. Thai Airways International earlier this year signed contracts to procure 45 Boeing jets. Boeing also offered THAI the option to purchase an additional 35 aircraft, Mr Lavaron noted.
Finance Minister Pichai Chunhavajira said on Tuesday that the 19% US tariff rate enables Thailand to remain competitive on the global stage.
'This tariff rate allows Thailand to remain globally competitive and retain an advantage over regional competitors,' he said. 'The rate offers an opportunity for Thailand to open the door to global economic expansion.'
He said the government is well aware of changes to the global economic rules and structures that require all countries to adapt. In the meantime, it has prepared financial measures, including soft loans, debt suspensions, campaigns encouraging Thais to use domestically produced goods, and budget allocation to accommodate adaptation by both large and small Thai enterprises, said Mr Pichai.
One-stop help centre
Commerce Minister Jatuporn Buruspat, meanwhile, said the government is opening a one-stop service centre to address the impact of US tariffs this week.
Located at the Export Promotion Center on Ratchadaphisek Road in Bangkok, the centre will provide information and support to all business sectors, including agriculture and small and medium-sized enterprises.
All related government agencies will be represented at the centre to offer guidance and resolve any issues for entrepreneurs, Mr Jatuporn said.
