In March, Thai consumer confidence fell for the second consecutive month, reaching its lowest point in five months, with the figure decreasing to 56.7 from 57.8 in February, as reported by the University of the Thai Chamber of Commerce (UTCC).
The decline was driven by rising living costs, stagnating economic growth, and worries about U.S. trade tariffs.
UTCC President Thanavath Phonvichai indicated that the decline in confidence is largely attributed to trade tensions, which could adversely affect Thai exports and tourism, hindering economic recovery.
As one of the Southeast Asian countries most affected by U.S. President Donald Trump’s trade measures, Thailand faced an unexpected 36% tariff. Meanwhile, a newly announced 90-day pause on these tariffs provides officials with additional time to formulate a response.
President Trump announced a temporary reduction of the tariffs on several countries, while simultaneously applying more pressure on China. Thanavath suggested that if negotiations could lower the tariffs to 10%, the economic impact might range from 100 billion baht to 150 billion baht ($2.93 billion-$4.40 billion), potentially reducing growth by 0.7 to 0.9 percentage points.
Following last week’s announcement of a 36% tariff, Finance Minister Pichai Chunhavajira warned that this measure could potentially reduce Thailand’s economic growth by 1 percentage point.
The Thai economy expanded by just 2.5% last year, trailing behind its regional counterparts.
In response to such circumstances, Thailand aims to secure a more favorable agreement by increasing its imports from the U.S. and reducing tariffs.
