Thai Chamber of Commerce, TNSC Concerned Over US Move to Suspend Tariff Talks

Source: Nation Thailand Publication Date: November 17, 2025 URL: https://www.nationthailand.com/business/trade/40058347

Thailand’s business community has expressed significant concern over the United States’ decision to suspend ongoing tariff negotiations, warning that the move could undermine bilateral trade relations and economic cooperation between the two nations.

Business Community Response

Thai Chamber of Commerce Position

• Immediate Concerns: Uncertainty created by suspension of negotiations
• Economic Impact: Potential disruption to existing trade flows
• Long-term Effects: Delayed progress toward comprehensive trade agreement
• Stakeholder Impact: Concerns for businesses planning US market expansion

Thai National Shippers’ Council (TNSC) Statement

• Logistics Implications: Potential increases in shipping and handling costs
• Supply Chain Disruptions: Uncertainty affecting import-export planning
• Competitive Disadvantages: Thai exporters facing tariff disadvantages
• Industry-wide Effects: Impact on shipping, logistics, and related services

Economic Implications

Export Sector Impact

• Agricultural Products: Continued high tariffs on Thai rice and tropical fruits
• Manufactured Goods: Uncertainty for electronics and automotive components
• Processed Foods: Premium pricing challenges for Thai food products
• Value-Added Products: Reduced competitiveness for processed agricultural goods

Business Planning Disruptions

• Investment Decisions: Delayed foreign direct investment decisions
• Market Expansion: Postponed plans for US market entry
• Capacity Planning: Uncertainty in production and inventory planning
• Financial Planning: Currency and pricing risk management challenges

Specific Industry Concerns

Agricultural Sector

• Rice Exports: Continued 25% tariff barrier affecting market access
• Tropical Fruits: High tariffs limiting durian and mangosteen exports
• Aquaculture Products: Competitive disadvantages for shrimp and fish products
• Organic Products: Premium positioning challenges in US market

Manufacturing Sector

• Electronics: Component exports facing continued tariff barriers
• Automotive Parts: Supply chain integration uncertainties
• Textiles and Apparel: Raw material and finished goods pricing pressures
• Machinery: Industrial equipment export limitations

Diplomatic and Political Context

US Policy Rationale

• Internal Review: Comprehensive assessment of trade policy priorities
• Stakeholder Consultation: Engagement with US business and agricultural groups
• Strategic Reassessment: Evaluation of Indo-Pacific trade relationships
• Domestic Priorities: Balancing international and domestic policy objectives

Thai Government Response

• Continued Engagement: Maintaining open diplomatic channels
• Alternative Approaches: Exploring parallel paths to trade liberalization
• ASEAN Coordination: Coordinating with regional partners
• Stakeholder Communication: Regular updates to business community

Risk Assessment

Short-term Impacts

• Market Uncertainty: Immediate disruption to trade planning
• Pricing Pressures: Potential tariff pass-through to consumers
• Competitive Dynamics: Shifts in market share among exporting countries
• Logistics Challenges: Increased complexity in supply chain management

Long-term Consequences

• Investment Delays: Postponed US investment in Thai manufacturing
• Market Diversion: Thai exports redirected to other markets
• Competitive Erosion: Loss of market share to competitors
• Relationship Strain: Potential damage to bilateral economic ties

Mitigation Strategies

Business Community Actions

• Market Diversification: Accelerated development of alternative markets
• Cost Optimization: Efficiency improvements to offset tariff impacts
• Product Differentiation: Focus on premium, high-value products
• Partnership Development: Enhanced collaboration with US business partners

Government Support Measures

• Trade Promotion: Intensified efforts in non-US markets
• Financial Assistance: Support for businesses affected by tariff uncertainties
• Diplomatic Engagement: High-level discussions to restart negotiations
• Industry Support: Sector-specific assistance and advisory services

Regional and Global Context

ASEAN Implications

• Collective Impact: Effects on broader ASEAN-US economic relations
• Coordination Needs: Regional response to US policy changes
• Alternative Strategies: ASEAN-wide approaches to trade diversification
• Competitive Positioning: Maintaining ASEAN’s role in US market

Global Trade Dynamics

• Multilateral Alternatives: Engagement with other trading partners
• WTO Considerations: Potential dispute settlement mechanisms
• Bilateral Opportunities: Enhanced focus on other bilateral relationships
• Supply Chain Resilience: Building more resilient trade networks

Future Scenarios

Optimistic Outlook

• Negotiation Resumption: Return to talks with favorable outcomes
• Interim Solutions: Partial agreements addressing key concerns
• Policy Resolution: US internal process leading to continued engagement
• Enhanced Cooperation: Stronger bilateral relationship post-resolution

Contingency Planning

• Market Diversification: Accelerated expansion into European and Asian markets
• Domestic Market Focus: Enhanced emphasis on domestic consumption
• Value Chain Development: Moving up the value chain to reduce tariff sensitivity
• Technology Integration: Digital transformation to improve competitiveness

Industry-Specific Responses

Agriculture Sector Strategy

• Quality Enhancement: Focus on premium, certified products
• Branding Initiatives: Stronger Thailand agricultural brand development
• Market Intelligence: Better understanding of US consumer preferences
• Logistics Optimization: Improved supply chain efficiency

Manufacturing Sector Adaptation

• Process Optimization: Cost reduction through technology adoption
• Product Innovation: Development of higher-value manufactured goods
• Market Segmentation: Focus on niche, high-margin market segments
• Supply Chain Diversification: Alternative sourcing and market strategies

Economic Analysis

Quantitative Impact Assessment

• Export Reduction: Potential 5-10% decline in US-bound exports
• Revenue Impact: $500-800 million reduction in export earnings
• GDP Effect: 0.1-0.2% reduction in economic growth
• Employment Impact: 10,000-20,000 jobs potentially affected

Qualitative Considerations

• Business Confidence: Reduced investor confidence in Thailand
• Market Perception: Concerns about Thailand’s trade policy reliability
• Competitive Position: Relative disadvantage compared to other exporters
• Innovation Incentives: Pressure to accelerate productivity improvements

Thai business leaders’ concerns over suspended US tariff talks highlight the importance of stable and predictable trade relations for economic planning and investment decisions.