NationThailand-Aug 4
Thai business leaders are bracing for economic turbulence as new US tariff policies threaten to disrupt the kingdom’s export-driven economy, which relies on foreign revenue for more than 50% of its GDP. Following the clarity on US customs tariff rates after 1st August 2025, corporate executives across key sectors have outlined comprehensive strategies to weather the anticipated economic storm whilst maintaining operational resilience. Thai Hotels Association President Thienprasit Chaiyapatranun said Thailand’s tourism sector hasn’t experienced direct impact from US retaliatory tariffs, but uncertainty remains over future energy costs as Thailand imports some oil from the United States. “Import tariffs could affect the US tourism sector itself, with fewer people likely to visit America due to higher import costs raising living expenses,” Theinprasit observed. “This could ultimately impact American purchasing power and potentially lead to inflation, requiring further corrective measures.” The banking sector is adopting defensive strategies such as prudent risk management and cost reduction, while urging businesses to diversify into new export markets through potential free trade agreements. Thai Airways is reducing its reliance on domestic tourism by focusing on a “Network Strategy” that leverages airline partnerships to create multiple revenue streams from connecting flights. Financial institutions are strengthening their internal resilience with robust operational frameworks and adequate provisions to support affected clients, similar to measures used during the COVID-19 crisis.
A key overarching strategy across sectors is diversification, with companies seeking new markets, developing alternative revenue streams, and using international networks to mitigate risks from the tariffs. Despite the challenges, Thailand’s business leaders express confidence in their preparedness for the new economic reality, emphasizing diversification, operational efficiency, and strategic partnerships as key survival tools in an increasingly uncertain global trade environment. Read more at:
