Bangkok: Thailand is grappling with the consequences of a newly imposed 36% import tax by the United States, a development described as the worst outcome of recent negotiations. Former Finance Minister Kornakorn Chatikavanij expressed concerns that this unexpected tax rate, higher than that imposed on Vietnam, signals a significant challenge for Thailand’s economic strategy.

According to Thai News Agency, Kornakorn highlighted the difficulties faced during negotiations with the US, underlining that the US maintained a stronger bargaining position. The US perceives that Thailand has long benefited from trade relations, prompting a unilateral decision to impose the higher tax. Meanwhile, Vietnam’s strategy to reduce their import taxes to 0% has positioned them more favorably than Thailand in international trade.

Kornakorn raised critical questions regarding Thailand’s negotiation strategies and called for a comprehensive review of the 2016 budget to mitigate the adverse effects on exporters and the national income. He emphasized the importance of addressing the potential impact on the country’s current account balance and warned of the risks associated with continuous deficits and declining foreign investment. The upcoming appointment of a new governor for the Bank of Thailand is seen as a pivotal moment, with the new leader’s vision expected to play a crucial role in restoring economic confidence.