Thailand is preparing for a potential influx of Chinese goods as the United States imposes new tariffs on imports from China.

Thai companies, especially in sectors such as steel, plastics, electrical appliances, and clothing, are concerned that the wave of inexpensive Chinese products could expand the list of industries affected from 23 last year to 30. Kriengkrai Thiennukul, chairman of the Federation of Thai Industries, emphasized the urgency of government action to shield local producers from unfair competition.

The concern stems from the possibility of Chinese exporters redirecting their goods to neighboring countries, including Thailand, as they face barriers to shipping to the US. In addition to domestic industry concerns, there are fears of retaliatory tariffs on Thai exports to the US, where Thailand posted a $35 billion trade surplus in the previous year.

The pressure on Thailand's manufacturing sector is already evident, with factory capacity utilization dropping to about 56%, and a continued decline in factory output, including a slump in automobile sales.

The Joint Standing Committee on Commerce, Industry, and Banking has urged the Thai government to set up a 'war room' to formulate immediate strategies in response to US President Donald Trump's trade policies.

The committee suggested hiring lobbyists to navigate US-China trade tensions and proposed fostering joint ventures between Chinese companies and Thai businesses to sidestep US tariffs.

Commerce Minister Pichai Naripthaphan is currently in the US, meeting with American trade officials to address the situation and avoid further complications for Thai exports.

Despite these challenges, the Thai business group has maintained its economic growth forecast for the year at 2.4% to 2.9%, acknowledging the risks posed by the escalating trade war and a strengthening local currency.