Bangkok: The Federation of Thai Industries (FTI) indicates that the US court's reversal of the 19% tariff eases pressure on Thai exports, but warns of the need for rapid adaptation to the new global trading landscape.

According to Thai News Agency, the President of the Federation of Thai Industries (FTI) stated that the US Supreme Court's ruling overturning retaliatory tariffs under emergency powers helped alleviate trade tensions and reduce the burden on Thai exporters, who had previously been subjected to tariffs as high as 19%. While there are signs of easing tensions, the FTI emphasized the need to monitor Donald Trump's plan to impose a 10% base tariff globally. The FTI also stressed the importance of diversifying markets and pursuing new FTAs to mitigate long-term risks.

Mr. Kriengkrai Thianukul, President of the Federation of Thai Industries (FTI), commented on the U.S. Supreme Court's ruling invalidating high reciprocal tariffs, which had previously been imposed under emergency powers. The court ruled that the president lacked the authority to set such tariffs without congressional approval.

The ruling stated that the legal change was expected to alleviate international trade tensions, potentially reducing the cost of living for American consumers and easing the burden on Thai exporters who previously faced high tariffs of up to 19%. However, Donald Trump intends to retaliate against the ruling by imposing a 10% global baseline tariff under Section 112, although this measure would only be in effect for 150 days unless extended by Congress.

While some Thai products, such as electronics, automotive parts, and jewelry, remain under close scrutiny, certain essential goods, such as agricultural produce and key raw materials, may be exempted to help control inflation.

However, while the court ruling provides Thailand with only a temporary respite, Thai industries still need to diversify their markets and accelerate the negotiation of new free trade agreements (FTAs) to mitigate the risks from future volatility in U.S. trade policy.

"Overall, we think it's better than the 19% impact we experienced, and we expect a partial return to normal. However, ultimately, we need to adapt quickly because we believe the world has changed. While some aspects are resolving and returning to their original balance, reducing the severity, Thailand still needs to prepare for unpredictable and rapidly evolving changes. Global trade in various dimensions has changed from the past, serving as a lesson for Thailand to reduce reliance on key markets and seek new ones," Mr. Kriengkrai said.

Mr. Kriengkrai further stated that the Federation of Thai Industries (FTI) will be summoning export-oriented industry groups for further discussions on how importers affected in the short term will reimburse funds and how to adjust product prices. Negotiations with importers are necessary because previously, there were both accelerated export efforts and exports after the 19% tariff came into effect.