More detail on US tariff impacts needed, says Pichai
With an Aug 1 deadline for reaching an agreement with Washington approaching, he emphasised the need to formulate responses to various possible outcomes, whether favourable or moderately adverse.
Discussions are ongoing as Thailand seeks to persuade US officials that its revised trade proposals are sound. The government hopes Washington will agree to a rate lower than 36%, which would be higher than those of key Southeast Asian peers and competitors.
'We must be prepared for every scenario and determine who will be affected,' Mr Pichai said on Wednesday after a meeting with the Joint Standing Committee on Commerce, Industry and Banking.
While earlier assessments broadly assumed exporters would bear the brunt of the tariffs, the current analysis is more detailed, he said.
The tariffs vary by product type and depend on local content of each item, making the impact uneven across industries, said the finance minister.
He added that private sector representatives would submit data on the expected impacts for review by Friday.
Poj Aramwattananont, chairman of the Thai Chamber of Commerce, expressed concern prior to the meeting with Mr Pichai. He warned that unresolved negotiations could result in the 36% tariff on Thai products remaining unchanged.
'We hope the US will impose a lower rate on Thailand than those imposed on Vietnam as Thailand's trade surplus with the US is significantly smaller,' said Mr Poj.
Vietnam had a trade surplus of $123 billion with the United States last year, compared with a figure of $45 billion for Thailand.
Vietnam negotiated an agreement with Washington under which its imports would face a 20% tariff, while Hanoi would impose a zero tariff on US goods, something Thailand does not appear prepared to do.
However, Washington will assess a 40% tariff on goods proven to be transshipped — mostly originating in China — or containing very little local Vietnamese content.
At the moment, Washington is proposing rates of 25% for Malaysia, 32% for Indonesia and 17% for the Philippines.
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