Trump’s presidency may enact protectionist policies, adversely affecting Thailand’s exports and investment, potentially slowing GDP growth. Tariffs could impact Thai goods, especially electronics, amid rising global competition.
Trump’s Victory and Policy Implications
Donald Trump’s election as the 47th president of the United States grants him the authority to implement significant policy changes. His administration is expected to prioritize protectionism, focusing on energy security, and likely escalating tensions on the global stage. Key policy proposals include substantial increases in import tariffs, immigration restrictions, and reduced military support for international allies.
Global Economic Impact
According to the IMF’s October 2024 outlook, Trump’s protectionist policies could have far-reaching effects on the global economy. Increased tariffs and trade uncertainties may deter investment and slow growth. Additionally, limits on immigration could constrict labor markets in the U.S. and Europe, further stunting economic progress and impacting global financial conditions, particularly for emerging markets.
Effects on Thailand’s Economy
Thailand may face significant economic challenges due to Trump’s trade policies, which could slow exports and reduce foreign investment. Increased tariffs may negatively affect Thai products, particularly electronics, while competition from Chinese imports may increase. The SCB EIC predicts a potential 0.5 percentage point decline in Thailand’s GDP growth by 2025, yet maintaining a neutral stance could open up new growth opportunities amidst these global changes.
Source : Flash: Trump 2.0 and Its Impact on Global and Thai Economies
