Thai Small and Medium Enterprises Council Calls for Commerce Ministry Assistance Against U.S. Import Taxes
The Thai Ministry of Commerce is taking proactive steps to support small and medium-sized enterprises (SMEs) that could be impacted by the new 19% US import tariffs. These measures aim to help SMEs navigate the challenging trade environment, find new export markets, and reduce production costs.
In a recent meeting with the Thai Small and Medium Enterprises Council, Commerce Minister Jatuporn Buruspat affirmed the Ministry's commitment to addressing the concerns of over 2 million export-oriented SMEs, particularly those selling online, which could be directly affected by the tariffs.
The Ministry's plans include the establishment of a One Stop Service advisory centre at the Export Centre in Ratchada. This centre will integrate support from banks, other support bodies, and relevant agencies, enabling entrepreneurs to adapt swiftly to the changing trade conditions.
Supree Thongpetch, President of the Thai Small and Medium Enterprises Council, expressed continued apprehension among SMEs despite Thailand securing a 19% tariff from the United States. Thongpetch urged efforts to ensure Thai products are clearly differentiated from those of other countries to prevent "transshipment" issues, which would drastically inflate production costs.
The Minister also affirmed that the Commerce Ministry would implement measures to reduce production costs alongside other supportive initiatives. Moreover, the Ministry is increasing collaboration with government sectors related to AI and e-commerce to bolster SME competitiveness.
Jatuporn Buruspat noted that the full impact of the 19% tariff would need to be assessed on a product-by-product basis, with deeper analysis to follow. However, he assured that premium beef already faces 0% tariffs from New Zealand and Australia under existing FTAs, so increased US imports would simply foster more competition.
The government has also announced support centres and a tariff adjustment system to help exporters adapt by the end of the year, reflecting a coordinated response to ease exporters' transition under the new tariff regime.
Despite the challenges posed by the tariffs, Jatuporn expressed optimism for overall exports in 2025, predicting a 2-3% expansion compared to 2024. He acknowledged that agricultural products, such as pork, would see increased imports from the US, but it would not affect Thai farmers overall.
In an effort to protect farmers and promote increased long-term production without burning, the government proposed quota-based imports from the US for maize.
In conclusion, the Thai Ministry of Commerce is taking a proactive approach to support SMEs affected by the new US tariffs. By implementing measures to reduce production costs, finding new export markets, and enhancing entrepreneurs' ability to adapt to trade changes, the Ministry aims to mitigate the impact of the tariffs and ensure the continued success of Thailand's SME sector.
- The Thai Ministry of Commerce aims to help businesses, including small and medium-sized enterprises (SMEs), in the challenging trade environment by implementing measures to reduce production costs and helping them find new export markets.
- In addition to reducing costs, the Ministry plans to increase collaboration with government sectors related to AI and e-commerce to bolster SME competitiveness, a move that may positively impact personal-finance and investing.
- To ensure Thai products are clearly differentiated and prevent "transshipment" issues that could potentially increase production costs, the Ministry is encouraging efforts to ensure that Thai products are uniquely positioned in the global market.
- Recognizing the potential impact of the US import tariffs on various sectors, including agriculture, the government has proposed quota-based imports from the US for maize to support farmers and promote increased long-term production without burning, demonstrating concern for both the health of the environment and the economy.
