Trump’s proposed tariffs on China, Mexico, and Canada could heighten trade tensions, impacting global economies. Thailand’s export growth may slow amid uncertainties and increased competition from Chinese products.
Escalating Tariff Tensions: Impact on Global Economies
Donald Trump’s tariff plans on China, Mexico, and Canada threaten global economies by amplifying trade tensions. Initially, there was a temporary reprieve when universal tariffs were delayed, but US-China conflicts could still worsen. Plans for 10% tariffs on Chinese imports and 25% on imports from Mexico and Canada suggest increasing pressure, significantly affecting China. The proposed Restoring Trade Fairness Act seeks to revoke China’s PNTR status, imposing high tariffs and threatening global supply chains. China’s exports and GDP might decrease, necessitating proactive economic measures.
Thailand’s Export Growth Faces Slowdown
Thai exports are poised to slow from 2024’s unexpected 5.4% growth to 2.7% in 2025 due to heightened trade tensions and competition from Chinese goods. Although benefiting from increased demand amid US-China trade uncertainties, Thai exports may see only marginal gains from the US’s proposed tariffs. Despite challenges, the digital economy and tourism expansion might support export growth. Krungsri Research predicts a slight increase in Thailand’s exports and GDP, highlighting structural concerns and President Trump’s trade policies as significant threats to Thailand’s economic outlook.
In a notable turn of events, global markets breathed a collective sigh of relief as former President Donald Trump announced a temporary delay in implementing universal tariffs that had been looming over international trade. The decision, seen by analysts as a tactical maneuver, has provided a brief respite for economies that were bracing for the widespread implications of heightened trade barriers.
The announcement has come at a critical juncture, as many countries have been grappling with economic challenges exacerbated by the COVID-19 pandemic. The proposed tariffs threatened to constrict international trade further, potentially igniting retaliatory measures and disrupting global supply chains. The deferment has thus been welcomed by major trading partners, who now have more time to negotiate and possibly avert a full-blown trade war. This pause offers a window of opportunity for diplomatic engagements aimed at reaching more sustainable trade agreements that cater to every involved party’s interests.
Financial markets reacted positively to the news, with major indices experiencing an upswing. The delay has eased investor concerns over impending cost increases that could have hampered corporate profitability and economic growth. Global economies, especially those heavily reliant on exports to the United States, have found a temporary shield from the damaging effects that sweeping tariffs might have wrought. Industries such as automotive, electronics, and agriculture might experience a much-needed stability period as they navigate through the supply chain disruptions caused over the past few years.
Despite the relief, there remains an underlying awareness that this delay is merely a temporary measure. The specter of tariffs continues to loom large, and the urgency to address the root causes of trade tensions remains. Stakeholders are encouraged to use this time to work toward long-term solutions that promote fair and balanced trade practices, benefiting economies worldwide. The onus now rests on policymakers to forge pathways that steer global trade towards a more collaborative and less confrontational future.
Source : Temporary Reprieve for Global Markets as Trump Delays Universal Tariffs
