Thailand's Export Crisis

Thanavath Phonvichai, President of UTCC, highlighted a critical opportunity for Thailand to negotiate a reduced tariff rate with the U.S., potentially down to 20%, before the impending Aug. 1 deadline. Despite this, he cautioned that reaching an agreement is uncertain.

Political Instability Adds to Economic Woes

The potential for domestic political turmoil, including the dissolution of parliament or failure to enact an economic stimulus, could severely impact Thailand's GDP, possibly reducing growth to below 1% for the year—a stark contrast to the 1.7% projection.

Long-term Tariff Impact

Should the 25–36% tariffs persist for a year, UTCC forecasts a devastating effect on exports, with losses ranging between 400–600 billion baht.

Consumer Confidence Hits 28-Month Low

Amid growing pessimism, the consumer confidence index plummeted to 52.7 in June, marking the lowest point in over two years.