Sethaput: BoT response to THB is to prevent excess volatility

Sethaput: BoT response to THB is to prevent excess volatility

Thailand's trade negotiation team is continuing discussions with the US on tariffs, despite the current caretaker government status. The Ministry of Commerce is leading the negotiations, focusing on key issues such as Local Content requirements and import quotas. The new Cabinet is expected to approve these details before submission to Parliament [1].

The 19% US import tariff rate has been agreed upon, but the two sides are still working through detailed arrangements. Thailand has proposed a 40% Regional Value Content (RVC) or Local Content requirement, while the US has suggested 50%. Additionally, Thailand plans to grant US exporters tariff exemptions on over 10,000 products, with certain items requiring locally sourced Thai corn [1].

The impact of the 19% tariff is already being felt by Thai exporters. The tariff has been in effect since August 1, 2025, and continued impact is expected until a new court ruling. US President Donald Trump retains the option to apply tariffs on individual products if the Supreme Court rules against him [1].

Deputy Prime Minister and Finance Minister Pichai Chunhavajira commented on the recent US appellate court ruling, stating that Thailand's position would remain unchanged regardless of the outcome. He noted that a ruling confirming the tariffs' lawfulness would not significantly impact Thailand's competitiveness, as the tariffs would be applied uniformly to all countries [1].

The Thai Chamber of Commerce and other private sector representatives have outlined three potential scenarios for the Trump tariffs following the US appellate court ruling. These include the Supreme Court upholding lower courts, ruling the tariffs lawful, or determining that tariffs cannot be applied on a per-country basis [1].

The Bank of Thailand (BoT) has been responding to the Thai Baht (THB) volatility by implementing measures to prevent excess fluctuations. These measures aim to stabilize the currency and maintain confidence in the Thai economy [2].

References:
[1] https://www.nationthailand.com/business/trade/40054846
[2] https://www.bot.or.th/