And the Stock Exchange of Thailand is working hard to maintain stability in its hot market. This announcement follows significant new developments related to US tariffs. The New York Stock Exchange (NYSE) set an upper and lower limit on stock price fluctuations, lowering the previous limits of 30% to 15%. This ruling represents an effort to reduce stock market volatility, which has been shaken lately by external economic pressures.
As a complement to these real-economy measures, the Stock Exchange of Thailand has additionally prohibited short-selling. This step is a key piece of a larger strategy to combat market volatility and safeguard investors during unpredictable economic conditions. The Finance Minister of Thailand, Pichai Chunhavajira, emphasized the importance of these actions as the country navigates through a challenging economic landscape.
The context for these steps is the remarkable unilateral announcement by President Donald Trump of a 90-day pause on unilateral US tariffs. This sudden, global pause presents an opportunity and potentially even a boon to all countries affected, Thailand certainly among them, allowing Thai officials to take more time to plan their response. The tariffs are currently fixed by law at only 36% on Thai exports. This is a clear and present danger to South-East Asia’s second-largest economy, with some estimates putting the cost to growth at close to one percentage point.
Acknowledging the seriousness of the COVID-19 challenge, Thailand is quickly gearing up an economic stimulus package—emphasizing job creation. The government aims to bolster employment opportunities as part of its response to the economic challenges presented by the tariffs. The Finance Minister proclaimed that the stimulus acts as a counter-cyclical measure. It’s a reasonable attempt to mitigate the damage that can come from escalating trade disputes.
Whether for logistics or trade diversification, Thailand’s domestic strategy is complemented by plans to import more from the United States. This step represents a commitment to encourage healthy trade relations and push for a better outcome while tariff negotiations continue. The Thai government is firmly committed to lowering tariffs wherever possible. They are ready to talk with US officials just as expectantly.
While Thailand comes to terms with this concerning economic stronghold, it goes without saying that times and priorities will have to change. Trump Administration tariffs on imports have prompted rapid shifts in trade patterns and industrial growth. In response, Thai authorities have acted swiftly.
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