Forecasted Growth of Exports by DITP; Implementation of Strategies to Counteract Trump's Tariffs
In response to the 19% US tariff on certain Thai exports, the Department of International Trade Promotion (DITP) has announced a series of measures aimed at supporting affected businesses, promoting market diversification, and stimulating export growth in 2025. The DITP is targeting a growth rate of 5-7%, a goal they are confident of achieving.
The DITP has received 50 million baht from the government’s economic stimulus package to provide soft loans and financial support to affected exporters and importers. This funding will be instrumental in helping businesses navigate the increased tariff costs.
Recognising the importance of market expansion, the DITP is actively identifying and promoting alternative export markets beyond the US. This move aims to reduce dependency on the US market and offset the tariff impacts.
To better understand the needs of the export sector, the DITP is gathering information through consultations with exporters. These consultations will help tailor assistance to meet the specific needs of each business. Proposals for further support measures will be submitted to the Commerce Minister and government authorities for approval.
In light of the Thai-Cambodian border conflict, which has disrupted land shipments, the DITP is encouraging exporters to reroute goods via the Laem Chabang deep-sea port. From there, marine transport to Laos is followed by overland shipment, providing a viable alternative route for exports.
The DITP is also increasing participation in business-matching activities with emerging trade partners to find new export opportunities. Thailand is exploring new export markets to offset the impact of the 19% US tariff.
Recognising the crucial role of Small and Medium Enterprises (SMEs) in the export sector, the DITP is considering increasing the SME export support budget, currently capped at 200,000 baht per business. The exact amount is yet to be finalised.
Furthermore, the DITP is leveraging soft power and cultural marketing initiatives like "Timeless Thai Taste 2025" to promote Thai culture, cuisine, and creative industries. This strategy aims to build brand recognition and consumer confidence in international markets, particularly targeting younger consumers and US investors.
Lastly, the DITP is working to curb illegal transshipment that might affect tariff compliance and enforcement. These combined measures form a comprehensive approach by the DITP to cushion the tariff impact and stimulate export growth in 2025.
[1] Thai DITP Announces Measures to Mitigate Impact of US Tariffs [2] Thai DITP to Support Exporters Amid US Tariffs [3] Thailand's DITP Promotes Timeless Thai Taste 2025 [4] Thai DITP to Increase SME Export Support Budget [5] Thai DITP to Combat Transshipment Abuse
[1] The Department of International Trade Promotion (DITP) has announced a series of measures to help businesses affected by the 19% US tariff on certain Thai exports and stimulate export growth in 2025.[2] To mitigate the impact of the US tariffs, the Thai DITP has received 50 million baht from the government’s economic stimulus package to provide soft loans and financial support to affected exporters and importers.[3] Recognizing the importance of international marketing, the DITP is increasing participation in business-matching activities with emerging trade partners and promoting cultural marketing initiatives like "Timeless Thai Taste 2025" to boost Thai brand recognition in international markets, targeting younger consumers and US investors.[4] In an effort to support Small and Medium Enterprises (SMEs), a crucial part of the export sector, the DITP is considering increasing the SME export support budget, which is currently capped at 200,000 baht per business.[5] The Thai DITP is also working to curb illegal transshipment to ensure tariff compliance and enforcement, forming a comprehensive approach to cushion the tariff impact and stimulate export growth in 2025.
