Blow behind the Thai trade deal, chaos and negotiations

When Donald Trump made a dramatic dramatic announcement, nowhere was anywhere larger than southeast Asian, a full view of the world and the economic model is built in exports.

Listings were as high as 49% in Thailand and the Vietnam Exporperation industry by playing numerous electronics industry, Malaysia and costumes for Cambodian chips.

“I remember waking up in the morning. He looked very early, and watching he was standing there on his board. I thought, did I see that? 36%? How could it be? “Richard Han says, Hana his father created a microelectronics of one of the largest manufacturers of Thai contract manufacturers.

Thailand, which confronted the taxation of 36%, now has an agreement, like most residents, to reduce rates to 19%.

Negotiations fell to the waters, finished two days before the deadline is established – August 1st. It has been a wonderful process that reaches there, and there is still few details that agreed exactly.

In ASEAN, in the Southeast Asian region’s BLOC, US $ 477 million (£ 360bn) exported to the United States in 2024. Vietnam is the farthest economy.

It is not surprising, then the Vietnam government was first to negotiate with the US first, established by the Trump established by the 46% fare.

According to the US President, The agreement reduces rates to 20%, While Vietnam claims, no US imports impose any rates. Say, the Vietnam leadership has not said anything about the deal.

There are no details, not written or signed documents, and some reports do not agree to Vietnam with Trump numbers. But they established a bar for other countries in the region.

Indonesia and the Philippines reduced their rates to 19%, although countries depend on exports to the US.

Thailand exports a lot to the US. They won more than $ 63 million last year, around a fifth of its exports. Thailand should also be in the head of Washington’s queue, 36% reductioned by Trump Trump.

Thailand is not in Vietnam, a communist state of a party, where critical decisions can quickly do some leaders, businesses or public opinions.

Rather, like South Korea and Japan, despite their hard American Ally American Alys, Thailand also has to be discussed with home policy and public opinion. Thailand also has a weak and breach of coalition government, looking at a bunch of interest seen.

Still worse, the US party had nothing to do with an angry trade.

In February, 40 Uyghur sent asylum seekers in Thailand, more than a decade returned to China, defying the reminders of the Secretary Marco Rubio. A Thai trade official said BBC negotiators told US negotiaks as complaining in tariff talks.

Then, a Commander of the Regional Army presented a Lèse-Majesté complaint against an academic US, and was imprisoned as a result and forced Thailand to leave. So from being on the front, he found it at the back of the Thai queue.

Another difficulty looking at the Thai trade team was the one who asked the US to cut the rate rate, especially in the Thai farm market.

The food is a great business in Thailand. CP Group, one of the largest farming in the world, is the largest business in the country. This US request was painful in Thailand.

“Vietnam opened the box of Pandora,” says another official trade officer of Thailand. “By offering zero percentage rates about all US imports, they make us hard on us easily open us.

Bangkok, three-hour records in Nakhon Nayok, maintains 12,000 pigs in Wariwut – important business in Thailand; Thais eat a lot of pigs. It is active at the Thai Pork Raisen association, and lobby has made it against eliminating tariffs in the US pig.

“The US farmers produce much larger scale than us, and their costs are lower. So the price of their pig will be lower, and home farmers will not survive.”

The inclusion of the agricultural market also stuck in negotiations with Japan, which wanted to protect his rice farmers and remain one of the main obstacles in India.

In Thailand, giants like CP are also agricultural in the US attacks that require opening other sectors such as birds and corn. Trade Group and Wardrobe Ministers There have been wonderful meetings in Washington, after each lecture that understands BBC.

But on the other hand, they are Thai manufacturers, which indicate a much larger contribution to GDP to GDP. They needed wrong deal.

“If we get 36%, it will be terrible for us,” Suwanpimolkulke Suparp said, before the SK Polymer’s Director, before the agreement is announced. The company makes a wonderful range of components of rubber and synthetic materials, washing machines, refrigerators, air conditioners.

“I certify that you will find one of our products at least one of our home,” he said.

Sim Polimer Suparp and its two brothers formed in 1991. His story is the story of modern Thailand, but the origin of the business of the small family of the father’s small family, the explosive growth of the global trading of the Thai economy.

They are part of the complex supply chain, which includes their products in other components from different countries to export consumers, industry or doctors. About 20% of the company’s income comes from the US, but the number is much higher when products containing ingredients. Trump Tarif spent a Spain in work.

“We have small margins,” Suparp said. He still said that they could handle the costs by 20% or 25% to the tariffs by reducing costs. As he spoke to BBC, when the agreement was announced, the uncertainty said the biggest challenge said: “Please deal with our government, so we can plan our business.”

20% Levia is also scalable for electronics manufacturers, a large industry in Thailand.

“We have about 20% of all of this region, our buyers will not look for alternative suppliers. It will be tax, as VAT, for US consumers,” says Richard there. The company carries out basic components of our digital life: printed circuits, integrated circuits, price rfid labels.

The Lord is there that it goes directly about 12% of his products, but as the proportion of SK polymers indirectly, it is much larger as part of other goods manufactured goods. But it is not only a fare number that is concerned.

Its concern is trans-shipment, the US charged by China to avoid tariffs by focusing its production throughout the Southeast Asia. Vietnam, according to President Trump, will pay 40% – will double the new rate rate – US judges over the trans-ship goods.

Thailand and Vietnam, foreign investments were significantly increased in the first Trump term after imposing rates in China, and the US exports were also risen. Some of them moved to the production of Chinese companies; Some were products using many more Chinese ingredients. And they are not just from China.

In a electronics manufacturer, SVI, the robots align the assembly and hundreds of small components cost hundreds of thousands of dollars. A quick look at the labels showed the components in Malaysia, Philippines, Taiwan and China.

SVI makes security cameras, tailor-made amplifiers, medical equipment, especially those who want their customers, scandinavian. The Vital manufacturing sector in Thailand is a very complex supply chain, it is almost impossible to know the demands of the US president.

According to the WHO, a product is considered local, if at least 40% of its value is added to the local manufacturing process, or if “significantly transformed”, an iPhone becomes something different.

The Trump Administration does not pay any rules, and it is not clear what is trans-packaged, but the Lord may be very afraid if Thailand companies are less than the standard tariff rate, more local components or china.

“The Southeast of Asia has a very large in China,” he explains. “China, so far, has the largest electronic supply chain and many other industries, and are the cheapest.

“We could buy materials from other parts of the world. But it would be almost impossible to achieve a very high threshold of Thailand or Philippines or Malaysia, say that it will achieve US certification.

Very few of these details have appeared at this time. Although Trump is claimed by the President, it has achieved zero percentage rates for goods in the Philippines and Indonesia, which is not correct, and that must still be negotiated.

For the Government of Thailand, it began to be late and struggled to meet requests for us, achieving an agreement has been a relief.

Then they will worry about how the agreement is made, as the details are practiced, usually years. And in that, they are very far – the rich and the economies of development are the same to continue with the monkurial rate policy in Trump.

“It has to stop at any time. Are sure to stop?” There the Lord says. “The problem is, we don’t know what the rules of the game will be, so we’re all milling, waiting to find out how to play a new game.”