More trade barriers and hindrances to campaigns against carbon dioxide emissions are major concerns among Thai manufacturers who need to adapt to changes expected from the Donald Trump administration, according to the latest survey by the Federation of Thai Industries (FTI).
All 150 respondents, who are executives and members of the FTI, believe Trump's economic policy will certainly affect the Thai manufacturing sector, with 56.7% expecting a moderate impact, 25.3% warning of a high impact, and 18% anticipating a limited impact.
"Most are moderately concerned about new policies from Washington as they await more clarity after Trump takes office on Jan 20," said ML Peekthong Thongyai, vice-chairman of the FTI.
The survey found an expected impact on trade and investment (62%), followed by baht value (52%), risks of geopolitical conflicts (25.3%), and the impact on the capital market and US allies (19.3%).
In terms of greatest concerns for the manufacturing sector, the FTI found 66% are anxious about an increase in US tariffs on foreign products.
Trump said earlier he would impose tariffs of 10-20% on all imported products, with tariffs of between 60-100% on goods imported from China, according to media reports.
Trump's America First policy, which could lead to the reshoring of US investments, was a concern of 31.3% of respondents, followed by his plan to withdraw from the Paris Agreement, which commits signatories to act regarding activities that cause climate change (30.7%), as well as changes to US international policy, with a greater focus on bilateral cooperation than multilateral cooperation (28%).
The majority of respondents stressed a need for local manufacturers to develop their products to meet global standards and seek new export markets other than the US, according to the poll.