Thai businesses should monitor global trade and the world economy following Donald Trump's return to the White House, according to the Thai Wholesale and Retail Trade Association.
Somchai Pornrattanacharoen, honorary advisor to the association, said Thai trade policies do not conflict with US trade policies, even though Thailand has a trade surplus with the US.
Trump has pledged to drastically increase tariffs on foreign goods entering the US, suggesting up to 60% on all imports from China and 20% on goods from other countries. He even mentioned a 200% tax on some imported cars.
According to the association, Thailand's retail and wholesale products will not be affected by Trump's protectionist measures as few of these products are exported to the US, with most shipments comprising cars, auto parts and agricultural products.
The US was Thailand's second-largest trading partner after China in 2023, with a trade value of US$68.3 billion.
Thailand has a trade surplus with the US of $29.4 billion.
"We must keep an eye on the trade policy between the US and other countries," said Mr Somchai.
He said the Thai government should monitor the trade policy of the new US administration, especially investment by US companies and plans to relocate production bases.
Mr Somchai predicts US manufacturers of consumer products who already invested in Thailand might maintain their production bases here because of low labour costs.
He said if the US imposes trade barriers on any country, the Thai government would have to identify whether brands from such countries set up factories in Thailand, as this could cause Thai products to be closely monitored by the US.
Mr Somchai encouraged the government to promote more foreign investment in Thailand, rethinking its investment incentives as some companies may use Thailand as a production base to leverage its geographical advantages.
"The investment must benefit Thailand, such as transfer of skills and know-how to Thai workers," said Mr Somchai.
The Thai government should prudently assess the trade policies of its trading partners to find mutually beneficial options for both nations, though Thailand's interests must be prioritised, he said.