Opposition criticises government’s response to Trump’s tariff negotiations, calls for proactive action

In today’s parliamentary session, opposition leader Natthaphong Ruengpanyawut raised questions about Thailand’s preparedness in the trade negotiations on US tariffs. He emphasised that, while the outcome of the negotiations on August 1 may not be disastrous, with a likely reduction of tariffs to below 36%, the crucial issue is how the Thai government plans to help citizens cope with the consequences and how to adapt to these changes.

He proposed the following key measures to address the situation and improve Thailand's approach in future trade negotiations:

1. Shift Thailand’s role from a passive follower of rules to an active participant in setting rules within ASEAN.

2. Create a safe space for investors seeking to diversify risks from the US or China, removing regulatory obstacles and simplifying the process for investment.

3. Open constructive negotiations with major global powers to ensure the fair transfer of technology and to create local value, rather than allowing foreign entities to dominate entire supply chains.

4. Rapidly elevate Thailand’s standards to be on par with developed nations, such as joining the OECD group.

5. Position Thailand as a leader in fostering cooperation between developing countries within the ASEAN region.

“The key point is that, regardless of the strategy, diplomacy should guide the process to ensure Thailand is seen as neutral and not siding with any one party. I urge the government to focus on clear communication with the public about the ongoing negotiations and their potential impact,” Natthaphong  stated.

He further pointed out that when considering the preparation for US tariffs, the government’s budget for the fiscal year 2026 raises concerns. Specifically, he noted:

1. There is no clear plan or project outlined for addressing or compensating those affected by the US tariffs, with only 100 million baht allocated for hiring a lobbyist in the US.

2. There is no coordination between various agencies to address the impact, or with industries that may be affected.

3. No measurable goals or indicators are in place to shift the supply chain.

“These issues reflect a lack of serious preparation for the widespread impact that could arise. I propose that the government urgently set up a coalition of public and private sectors to monitor the situation, including long-term effects,” said Natthaphong. 

He added that the government must also disclose the details of the negotiations, including what the US has demanded and what Thailand is offering. Furthermore, a financial framework for compensating affected workers and businesses should be established, and strict enforcement of laws regarding imports from other countries should be prioritised.