Thailand prepares 50 billion baht to support exporters and SMEs amid Trump's tariffs

The Thai government plans to use 40-50 billion baht from its economic stimulus budget to assist exporters and SMEs affected by the US tariff increase to 36%.

The Thai government has set aside 40-50 billion baht from the economic stimulus budget to support businesses affected by the new US tariffs, set to increase to 36% on all imports from Thailand starting August 1, 2025, said Deputy Finance Minister Julapun Amornvivat on Tuesday.

Julapun discussed the ongoing negotiations with the US, stating that Team Thailand has adjusted its terms and submitted them to the US Trade Representative for further consideration. He reassured the public that the government is doing everything possible and that Deputy Prime Minister and Finance Minister, Pichai Chunhavajira, is working hard to ensure smooth negotiations, aiming for a win-win outcome.

“The US has responded positively to our proposals, but the negotiations are not easy. What’s happening now, in simple terms, is a delay to allow for the conclusion of talks, and we are confident that we can move towards a final agreement,” said Julapun.He went on: “Thailand has submitted new proposals, and we will expedite the process to reach a conclusion within the set timeframe. Our negotiations remain focused on a win-win solution, and while we may have to make some concessions, we won’t allow it to negatively affect Thai businesses and farmers. Team Thailand still has the confidence of the Thai people.”

Regarding the measures to support businesses likely to be affected by the tariffs, Julapun explained that the government had already set aside funds from the 157-billion-baht economic stimulus plan to directly assist affected businesses. The first phase, worth 10 billion baht, has already been allocated, with an additional 40-50 billion baht available for future use.

As for the proposal to amend the 2025 Budget Act to address the US tariff issue, Julapun stated that it was too early to consider such changes since the negotiations have not yet concluded. The flexibility of the budget mechanisms should be sufficient to handle the crisis, without the need for changes at the committee stage.

(2025/07/08-00:00)