Limited impacts foreseen for Thailand from US safeguard measure

BANGKOK, March 5 (TNA) - The Kasikorn Research Center (KRC) says that Washington's imminent safeguard measure on imposing hefty tariffs on steel and aluminum imports is unlikely to seriously affect Thailand. The Bangkok-based reseach firm foresaw on March 4 that the planned measure, announced by US President Donald Trump last week, on the imported tariff hike on steel and aluminum, as high as 25 per cent and 10 per cent respectively, should have limited negative impact on Thailand. KRC pointed out that the US imported tariff hike, expected to take effect soon, should directly affect only Thailand's construction material and upstream processed steel manufacturing sectors, namely steel pipes, sheets and wires, as well as aluminum plates and sheets. According to the leading Thai private think tank, processed household goods produced from steel and aluminum should not be affected by the US immiment safeguard measure. KRC conceded that as an indirect negative impact, there could be oversupply and declining prices of consumer products made from steel and and aluminum on the domestic market, but Thai importers of raw materials for upstream and midstream production for downstream products should benefit from the US planned measure. KRC cautioned, however, that Washington would impose high tariffs on frozen fish and shrimp imports similarly in the future, which would widely affect Thai seafood businesses. The established reseach firm noted that the incoming US protectionist measure is rather comprehensive, suggesting that Thai producers of steel, aluminum and frozen seafood products eye new importing markets, instead of heavily relying on the US market, to alleviate the risk factors. Besides, the domestic business sector should beware of and be prepared for impacts on the Thai economy from possible retaliation measures implemented by other trading partners. (TNA)