Interview: Countries giving in to U.S. tariff pressure would suffer greater harm, says former Thai minister

Former Thai Finance Minister Suchart Thadathamrongvech speaks during an interview with Xinhua in Bangkok, Thailand, on April 30, 2025. (Xinhua/Thana Nuntavoranut)

BANGKOK, May 5 (Xinhua) -- The U.S. tariff measures are "one sided" and lack theoretical justification, said former Thai Finance Minister Suchart Thadathamrongvech, warning that countries giving in to U.S. unreasonable demands could suffer greater harm.

"There is no reason to bow to U.S. pressure," Suchart said in a recent interview with Xinhua, pointing out that the U.S. tariff measures are severely impacting developing countries like Thailand while also hurting American consumers.

He warned that countries choosing to compromise could end up suffering even more. "If you bow, he (the U.S. administration) will ask more and more. There will be never-ending."

A series of tariff policies and the subsequent changing courses have created significant disruption to global trade, he said.

As a former economics professor, Suchart argued that the rationale of the U.S. government for raising tariffs is not supported by economic theory, citing studies showing that the burden of previous U.S. tariffs has been borne primarily by American consumers rather than foreign exporters. Even if some industries were to return to the United States, it would take a long time, and the damage caused in the meantime is severe.

"America is hurting its own people," he said. "Goods are disappearing from the shelves of the supermarkets, and the prices are going to be skyrocketing."

Suchart went on to point out that the United States has long been a major beneficiary of the current global trade system.

"The United States has long relied on printing money to buy from the rest of the world. They should not complain much as people are willing to give them real commodities in exchange for printed money," he said.

Export-driven economies like Thailand are facing serious challenges due to tariff volatility, he said, noting that export planning typically requires several months of lead time and sudden changes in trade policy make it extremely difficult for countries and businesses to adjust their production and market strategies in time.

Thailand's Ministry of Finance has recently lowered its 2025 growth forecast from 3 percent to 2.1 percent, citing the impact of U.S. tariffs and a global economic slowdown. The Thai central bank earlier said the country's economic growth could fall to just 1.3 percent this year in the worst-case scenario.

Suchart called on countries to stand firm and protect their own interests under such pressure, urging members of the Association of Southeast Asian Nations (ASEAN) to continue supporting free trade, strengthen ties with other trading partners, and enhance coordination through the ASEAN framework to safeguard shared interests.

"Relying too heavily on a large market with unpredictable policies like the United States puts us at risk," he said. ■