Thai SMEs Council Urges Support from Commerce Ministry Over US Tariffs

 

Thailand's Small and Medium Enterprises (SME) Council has called for immediate measures from the Ministry of Commerce to support businesses preparing for the impact of the new 19% US import tariffs. 

The call came during a meeting between the Ministry and SME representatives held on Friday, where concerns were raised about the direct consequences for many businesses.

Supree Thongpetch, President of the Thai Small and Medium Enterprises Council, expressed continued apprehension among SMEs despite Thailand securing a 19% tariff from the United States. 

He highlighted that over 2 million export-oriented SMEs, particularly those selling directly to the US via online platforms like eBay and Amazon, would be directly affected. These businesses often export small quantities of diverse goods, from mother and baby clothing to aromatherapy products, which previously faced low or no import duties. 

The new 19% tariff, he warned, would significantly increase their costs and could lead to a loss of competitiveness.

During the discussion with Commerce Minister Jatuporn Buruspat and other Ministry executives, Supree appealed for urgent assistance. He specifically requested the Ministry to help find new markets, identify ways to reduce production costs, and enhance the capabilities of entrepreneurs to adapt to future changes. 

He also stressed the need for increased collaboration with the government, especially for businesses involved in AI and e-commerce, which could provide a foundation for SMEs. 

 

Furthermore, he urged efforts to ensure Thai products are clearly differentiated from those of other countries to prevent "transshipment" issues, which would drastically inflate production costs.
 

 

 

 

Commerce Minister Jatuporn Buruspat, speaking after the meeting, informed the SME groups that Thailand's export market would not be the same going forward, and some industries might face direct impacts. 

 

He assured them that the Ministry of Commerce was prepared to respond and find remedial measures.

 

Among the Ministry's plans is the establishment of a One Stop Service advisory centre at the Export Centre in Ratchada. 

 

This centre will integrate support from relevant agencies, including banks and other support bodies, to provide comprehensive advice, consultations, and solutions for entrepreneurs to adapt swiftly.

 

Addressing concerns for some SME products that previously faced lower or no tariffs, Jatuporn stated that other countries also face increased duties, meaning Thai goods would remain competitive. 

 

He affirmed that the Commerce Ministry would implement measures to reduce production costs alongside other supportive initiatives.

 

The Minister acknowledged that agricultural products, such as pork, would see increased imports from the US. While this might lead to lower domestic prices for consumers, he asserted that it would not affect Thai farmers overall. 

 

He noted that premium beef already faces 0% tariffs from New Zealand and Australia under existing FTAs, so increased US imports would simply foster more competition. 
 

 

For maize, a high-demand crop where local production (5 million tonnes) falls short of consumption (10 million tonnes), the government proposed quota-based imports from the US. 

 

This would ensure domestic produce is purchased first to protect farmers and would also promote increased long-term production of maize grown without burning.

 

"The announcement of this new tariff rate is a situation Thailand must accept will impact exports, especially for small entrepreneurs," Jatuporn stated. "However, it is still good news because Thailand's tariff rate is similar to other countries in the region, allowing Thailand to remain competitive in the US market."

 

He added that the full impact of the 19% tariff would need to be assessed on a product-by-product basis, with deeper analysis to follow.

 

Concurrently, Thailand would accelerate efforts to open new markets and push for Free Trade Agreement (FTA) negotiations with other trading partners to create additional opportunities.

 

"The most important thing is the adaptation of entrepreneurs, because the global trade situation today is not just about US tariffs," Jatuporn said. "It also involves geopolitical factors, climate change, and environmental measures like the EU's Carbon Border Adjustment Mechanism (CBAM)."

 

Jatuporn expressed optimism for overall exports in 2025. Despite the challenges posed by the new tariff measures, he believes Thai exports for the year are likely to expand by the targeted 2-3% compared to 2024, partly due to accelerated exports in the first half.

 

He pledged the Commerce Ministry's continued collaboration with all sectors to help businesses remain competitive in the global market.